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Bull Of The Day: Ultra Clean (UCTT)

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Ultra Clean Holdings (UCTT - Free Report) is a Zacks Rank #1 (Strong Buy) and sports Value and Growth style score of “B.”  Today, this stock is the Bull of the Day.

Description

Ultra Clean Holdings designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor capital equipment and equipment industry It offers precision robotic systems that are used when accurate controlled motion is required. Ultra Clean Holding  was founded in 1991 and is headquartered in Hayward, California.

Follow Brian Bolan on Twitter: @BBolan1

Most Recent Quarter

The most recent quarterly report came on February 22, 2017 and it saw the company top the Zacks Consensus Estimate by $0.09 for a 33 % positive earnings surprise.  Revenue came in at $175M, which was $3M ahead of expectations and good for a 1 % positive revenue surprise.

The stock jumped 13% in the session following the release.  The biggest reason for the outsized move in the stock was that guidance was raised when the company reported results.

Estimates

Here is the reason for this stock to be the Bull of the Day.  The Zacks Consensus Estimate for 2017 has steady risen since last summer.  At that time analysts were expecting around $0.40 in EPS for 2017.  By October the number increased more than 50% to $0.68 and has almost doubled since then to the current level of $1.18.  That is just what investors want to see.

The 2018 Zacks Consensus Estimate is somewhat fresh and the visibility probably isn’t that great right now.  That said, the number first came out in January at $0.97 and is now at $1.28, an increase of around 30%.

Valuation

UCTT now trades at 13x forward earnings and that is well below the 17x industry average.  The other metrics we tend to look at (price to book 2.3x vs 4.4x and price to sales 0.9x vs 6.7x) show the stock trading at a discount as well. 

Earnings growth is projected to be 82% in 2017, nearly triple the industry average and that will be supported by above average revenue growth as well.

Next Report

The next time UCTT reports will be sometime in late April. 

 

Ultra Clean Holdings, Inc. Price, Consensus and EPS Surprise

Ultra Clean Holdings, Inc. Price, Consensus and EPS Surprise | Ultra Clean Holdings, Inc. Quote

 

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