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

Onto Innovation (ONTO) closed the most recent trading day at $250.13, moving -11.07% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.29%, and the technology-centric Nasdaq decreased by 0.56%.

The maker of semiconductor manufacturing equipment's shares have seen a decrease of 15.21% over the last month, not keeping up with the Computer and Technology sector's gain of 1.49% and the S&P 500's loss of 0.82%.

Analysts and investors alike will be keeping a close eye on the performance of Onto Innovation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.27, reflecting a 146.74% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $390.66 million, reflecting a 79.05% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $8.04 per share and a revenue of $1.42 billion, demonstrating changes of +62.75% and +41.22%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Onto Innovation. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.98% higher. Onto Innovation currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Onto Innovation has a Forward P/E ratio of 34.98 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 34.98 for its industry.

We can additionally observe that ONTO currently boasts a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Nanotechnology was holding an average PEG ratio of 0.92 at yesterday's closing price.

The Nanotechnology industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 1, positioning it in the top 1% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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