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Ultra Clean Holdings (UCTT) Gains As Market Dips: What You Should Know

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Ultra Clean Holdings (UCTT - Free Report) closed at $29.77 in the latest trading session, marking a +0.47% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.

Coming into today, shares of the chipmaking equipment services company had lost 8.52% in the past month. In that same time, the Computer and Technology sector lost 7.53%, while the S&P 500 lost 8.06%.

Ultra Clean Holdings will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.03, up 4.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $591.45 million, up 14.8% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.55 per share and revenue of $2.43 billion. These totals would mark changes of +8.33% and +15.68%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Ultra Clean Holdings. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ultra Clean Holdings is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Ultra Clean Holdings currently has a Forward P/E ratio of 6.51. For comparison, its industry has an average Forward P/E of 11.13, which means Ultra Clean Holdings is trading at a discount to the group.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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