Onto Innovation (ONTO) Suffers a Larger Drop Than the General Market: Key Insights

Onto Innovation (ONTO) ended the recent trading session at $95.82, demonstrating a -1.19% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.51%. Prior to today's trading, shares of the maker of semiconductor manufacturing equipment had gained 2.26% lagged the Computer and Technology sector's gain of 2.98% and outpaced the S&P 500's gain of 0.45%.The investment community will be closely monitoring the performance of Onto Innovation in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.27, reflecting a 3.79% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $249.75 million, up 3.06% from the year-ago period. ONTO's full-year Zacks Consensus Estimates are calling for earnings of $5.14 per share and revenue of $992.6 million. These results would represent year-over-year changes of -3.75% and +0.53%, respectively. 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 moved 3.36% lower. Onto Innovation is currently a Zacks Rank #4 (Sell). Digging into valuation, Onto Innovation currently has a Forward P/E ratio of 18.88. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.88 for its industry. Meanwhile, ONTO's PEG ratio is currently 0.63. 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. The Nanotechnology was holding an average PEG ratio of 0.63 at yesterday's closing price. The Nanotechnology industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 236, positioning it in the bottom 5% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks