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Ultra Clean Holdings (UCTT) Gains As Market Dips: What You Should Know

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Ultra Clean Holdings (UCTT - Free Report) closed at $55.11 in the latest trading session, marking a +1.14% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.41%.

Prior to today's trading, shares of the chipmaking equipment services company had lost 3.64% over the past month. This has lagged the Computer and Technology sector's gain of 9.72% and the S&P 500's gain of 5.07% in that time.

UCTT will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2021. On that day, UCTT is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 57.69%. Meanwhile, our latest consensus estimate is calling for revenue of $390.2 million, up 21.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.46 per share and revenue of $1.65 billion. These totals would mark changes of +23.57% and +18.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for UCTT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.23% higher. UCTT is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note UCTT's current valuation metrics, including its Forward P/E ratio of 15.73. This valuation marks a discount compared to its industry's average Forward P/E of 20.27.

We can also see that UCTT currently has a PEG ratio of 1.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UCTT's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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