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Onto Innovation (ONTO) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, Onto Innovation (ONTO - Free Report) reached $209.05, with a +1.21% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.9%. Meanwhile, the Dow gained 0.81%, and the Nasdaq, a tech-heavy index, added 1.22%.

Heading into today, shares of the maker of semiconductor manufacturing equipment had gained 10.07% over the past month, outpacing the Computer and Technology sector's gain of 5.76% and the S&P 500's gain of 3.15% in that time.

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 $1.31 per share, which would represent year-over-year growth of 36.46%. Meanwhile, our latest consensus estimate is calling for revenue of $250.54 million, up 20.92% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.18 per share and revenue of $977.85 million, indicating changes of +38.87% and +19.85%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Onto Innovation. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. Onto Innovation currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Onto Innovation is holding a Forward P/E ratio of 39.84. This expresses no noticeable deviation compared to the average Forward P/E of 39.84 of its industry.

One should further note that ONTO currently holds a PEG ratio of 1.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Nanotechnology industry was having an average PEG ratio of 1.33.

The Nanotechnology industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 39% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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