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Ultra Clean Holdings (UCTT) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Ultra Clean Holdings (UCTT - Free Report) closed at $44.77, marking a +1.36% move from the previous day. This move outpaced the S&P 500's daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the chipmaking equipment services company had lost 10.97% in the past month. In that same time, the Computer and Technology sector lost 1.7%, while the S&P 500 gained 0.88%.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $605.47 million, up 44.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.03 per share and revenue of $2.48 billion. These totals would mark changes of +19.76% and +18.01%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.59% higher. Ultra Clean Holdings is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Ultra Clean Holdings is holding a Forward P/E ratio of 8.79. For comparison, its industry has an average Forward P/E of 13.26, which means Ultra Clean Holdings is trading at a discount to the group.
Also, we should mention that UCTT has a PEG ratio of 1.1. 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. Electronics - Manufacturing Machinery stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 Zacks.com.
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Ultra Clean Holdings (UCTT) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Ultra Clean Holdings (UCTT - Free Report) closed at $44.77, marking a +1.36% move from the previous day. This move outpaced the S&P 500's daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the chipmaking equipment services company had lost 10.97% in the past month. In that same time, the Computer and Technology sector lost 1.7%, while the S&P 500 gained 0.88%.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $605.47 million, up 44.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.03 per share and revenue of $2.48 billion. These totals would mark changes of +19.76% and +18.01%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.59% higher. Ultra Clean Holdings is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Ultra Clean Holdings is holding a Forward P/E ratio of 8.79. For comparison, its industry has an average Forward P/E of 13.26, which means Ultra Clean Holdings is trading at a discount to the group.
Also, we should mention that UCTT has a PEG ratio of 1.1. 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. Electronics - Manufacturing Machinery stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 Zacks.com.