Onto Innovation (ONTO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Onto Innovation (ONTO) closed at $200.17 in the latest trading session, marking a -4.44% move from the prior day. This change lagged the S&P 500's daily loss of 1.51%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.01%.

Shares of the maker of semiconductor manufacturing equipment have depreciated by 7.04% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.84%, and the S&P 500's loss of 3.63%.

Analysts and investors alike will be keeping a close eye on the performance of Onto Innovation in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.32, signifying a 12.58% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $280.67 million, up 5.27% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.41 per share and revenue of $1.22 billion, indicating changes of +29.76% and +21.22%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Onto Innovation. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.24% increase. As of now, Onto Innovation holds a Zacks Rank of #2 (Buy).

In the context of valuation, Onto Innovation is at present trading with a Forward P/E ratio of 32.7. For comparison, its industry has an average Forward P/E of 32.7, which means Onto Innovation is trading at no noticeable deviation to the group.

Also, we should mention that ONTO has a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Nanotechnology industry stood at 1.09 at the close of the market yesterday.

The Nanotechnology industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 6, placing it within the top 3% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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This article originally published on Zacks Investment Research (zacks.com).

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