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Onto Innovation (ONTO) closed the latest trading day at $137.62, indicating a +1.94% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
Shares of the maker of semiconductor manufacturing equipment have depreciated by 21.85% over the course of the past month, underperforming the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26%.
The upcoming earnings release of Onto Innovation will be of great interest to investors. On that day, Onto Innovation is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 24.58%. Simultaneously, our latest consensus estimate expects the revenue to be $265.98 million, showing a 16.23% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.30 per share and a revenue of $1.1 billion, representing changes of +17.98% and +11.25%, respectively, from the prior year.
Any recent changes to analyst estimates for Onto Innovation should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.32% decrease. Onto Innovation is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Onto Innovation is currently trading at a Forward P/E ratio of 21.42. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 21.42.
Meanwhile, ONTO's PEG ratio is currently 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Nanotechnology industry had an average PEG ratio of 0.71 as trading concluded yesterday.
The Nanotechnology industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 34% of all industries, numbering over 250.