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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 $41.77, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 0.62%.

Heading into today, shares of the chipmaking equipment services company had lost 19.24% over the past month, lagging the Computer and Technology sector's loss of 9.41% and the S&P 500's loss of 6.57% in that time.

Ultra Clean Holdings will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ultra Clean Holdings to post earnings of $1.15 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $605.47 million, up 44.98% from the year-ago period.

UCTT's full-year Zacks Consensus Estimates are calling for earnings of $5.03 per share and revenue of $2.48 billion. These results would represent year-over-year changes of +19.76% and +18.01%, respectively.

Any recent changes to analyst estimates for Ultra Clean Holdings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 8.59% higher. Ultra Clean Holdings currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Ultra Clean Holdings's current valuation metrics, including its Forward P/E ratio of 8.41. This represents a discount compared to its industry's average Forward P/E of 13.08.

We can also see that UCTT currently has a PEG ratio of 1.05. 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 0.65 as of yesterday's close.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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