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Onto Innovation (ONTO) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest close session, Onto Innovation (ONTO - Free Report) was down 1.08% at $101.76. This change lagged the S&P 500's 0.33% loss on the day. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

The maker of semiconductor manufacturing equipment's stock has climbed by 2.87% in the past month, falling short of the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07%.

Investors will be eagerly watching for the performance of Onto Innovation in its upcoming earnings disclosure. On that day, Onto Innovation is projected to report earnings of $1.27 per share, which would represent a year-over-year decline of 3.79%. Meanwhile, our latest consensus estimate is calling for revenue of $249.75 million, up 3.06% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.14 per share and revenue of $994.52 million, which would represent changes of -3.75% and +0.73%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Onto Innovation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Onto Innovation is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Onto Innovation currently has a Forward P/E ratio of 20.03. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 20.03.

We can also see that ONTO currently has a PEG ratio of 0.67. 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. The average PEG ratio for the Nanotechnology industry stood at 0.67 at the close of the market yesterday.

The Nanotechnology industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered 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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