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Ultra Clean Holdings (UCTT) Gains But Lags Market: What You Should Know

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Ultra Clean Holdings (UCTT - Free Report) closed the most recent trading day at $43.33, moving +0.58% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the chipmaking equipment services company had lost 9.61% over the past month. This has lagged the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 3.76% in that time.

Investors will be hoping for strength from Ultra Clean Holdings as it approaches its next earnings release. On that day, Ultra Clean Holdings is projected to report earnings of $1.15 per share, which would represent 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.03 per share and revenue of $2.48 billion, which would represent changes of +19.76% and +18.01%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ultra Clean Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection has moved 6.13% higher. Ultra Clean Holdings is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Ultra Clean Holdings's current valuation metrics, including its Forward P/E ratio of 8.57. This valuation marks a discount compared to its industry's average Forward P/E of 13.49.

We can also see that UCTT currently has a PEG ratio of 1.07. 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 0.68 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 84, putting it in the top 34% 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.

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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