Back to top

Image: Bigstock

Ultra Clean Holdings (UCTT) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Ultra Clean Holdings (UCTT - Free Report) closed the most recent trading day at $50.92, moving +0.99% from the previous trading session. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 0.28%.

Heading into today, shares of the chipmaking equipment services company had lost 13.77% over the past month, lagging the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.

Wall Street will be looking for positivity from Ultra Clean Holdings as it approaches its next earnings report date. This is expected to be February 23, 2022. In that report, analysts expect Ultra Clean Holdings to post earnings of $1.19 per share. This would mark year-over-year growth of 46.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $609.25 million, up 64.83% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Ultra Clean Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ultra Clean Holdings is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Ultra Clean Holdings is holding a Forward P/E ratio of 10.83. This represents a discount compared to its industry's average Forward P/E of 13.25.

We can also see that UCTT currently has a PEG ratio of 1.35. 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. Electronics - Manufacturing Machinery stocks are, on average, holding a PEG ratio of 0.83 based on yesterday's closing prices.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

To follow UCTT in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Ultra Clean Holdings, Inc. (UCTT) - free report >>

Published in