Back to top

Analyst Blog

Zacks Investment Research upgraded Ultra Clean Holdings Inc. (UCTT - Free Report) to a Zacks Rank #1 (Strong Buy) on Sep 28, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market in the near term.

Why the Upgrade?

Market sentiments have been favoring Ultra Clean Holdings since the beginning of 2016, as evident from the 34.4% rise in the company’s share price to date. Also, the company reported better-than-expected results in second-quarter 2016 with a positive earnings surprise of 25%. Earnings of 10 cents per share exceeded the Zacks Consensus Estimate of 8 cents. Revenue grew 10.4% year over year, driven by healthy semiconductor revenue.

For third-quarter 2016, Ultra Clean Holdings anticipates revenue to be within $133−$138 million, above $130 million generated in the previous quarter while earnings are predicted to be within 11−14 cents per share range, up from 10 cents in the second quarter.  

Impressive results and outlook have made investors optimistic about Ultra Clean Holdings’ prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock increased by 9.1% to 12 cents per share for third-quarter 2016 and by 6.9% to 31 cents per share for 2016.

ULTRA CLEAN HLD Price and Consensus

 

ULTRA CLEAN HLD Price and Consensus | ULTRA CLEAN HLD Quote

Other Stocks to Consider
 
Ultra Clean Holdings currently has a market capitalization of $222.7 million. Other stocks worth mentioning in the electronic manufacturing machinery industry include Aixtron SE (AIXG - Free Report) , Intevac Inc. (IVAC - Free Report) and Nikon Corporation (NINOY - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aixtron SE reported better-than-expected results in the last quarter, with a positive average surprise of 9.1%. Also, the loss per share estimate for 2016 has decreased over the last 60 days.

Intevac Inc. reported better-than-expected bottom-line results in the last four quarters, with an average positive surprise of 30%. Also, the loss per share expectations for 2016 and 2017 has been reduced over the past 60 days.

Nikon Corporation has witnessed positive revisions in earnings estimates for fiscal 2017 and 2018 over the past 60 days. Also, the company has a positive average earnings surprise of 48.61%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>