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Ultra Clean Holdings (UCTT) Dips More Than Broader Markets: What You Should Know

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Ultra Clean Holdings (UCTT - Free Report) closed the most recent trading day at $48.05, moving -4.51% from the previous trading session. This change lagged the S&P 500's 0.67% loss on the day.

In that report, analysts expect UCTT to post earnings of $0.95 per share. This would mark year-over-year growth of 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $505 million, up 46.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.86 per share and revenue of $1.84 billion. These totals would mark changes of +37.86% and +31.31%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for UCTT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 12.34% higher within the past month. 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 13.04. Its industry sports an average Forward P/E of 18.33, so we one might conclude that UCTT is trading at a discount comparatively.

Meanwhile, UCTT's PEG ratio is currently 1.63. 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. The Electronics - Manufacturing Machinery industry currently had an average PEG ratio of 1.25 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 32, putting it in the top 13% 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.

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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