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Why Onto Innovation (ONTO) Dipped More Than Broader Market Today

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Onto Innovation (ONTO - Free Report) closed at $130.96 in the latest trading session, marking a -4.22% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.

Shares of the maker of semiconductor manufacturing equipment have appreciated by 25.57% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.98%, and the S&P 500's gain of 3.08%.

The investment community will be closely monitoring the performance of Onto Innovation in its forthcoming earnings report. On that day, Onto Innovation is projected to report earnings of $0.89 per share, which would represent a year-over-year decline of 33.58%. Simultaneously, our latest consensus estimate expects the revenue to be $218.24 million, showing a 13.47% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.92 per share and a revenue of $992.52 million, representing changes of -7.87% and +0.53%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Onto Innovation. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.11% lower. Onto Innovation currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Onto Innovation is holding a Forward P/E ratio of 27.81. This signifies no noticeable deviation in comparison to the average Forward P/E of 27.81 for its industry.

Investors should also note that ONTO has a PEG ratio of 0.93 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Nanotechnology industry stood at 0.93 at the close of the market yesterday.

The Nanotechnology industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 235, finds itself in the bottom 5% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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