Onto Innovation (ONTO) is set to report results for the second quarter of 2024 on Aug 8. The Zacks Consensus Estimate for second-quarter earnings per share (EPS) has been steady at $1.19 in the past 60 days, implying an increase of 50.6% from the year-ago quarter's figure. The company expects non-GAAP EPS in the range of $1.14-$1.26. Meanwhile, the consensus mark for revenues is pegged at $235.6 million, indicating a rise of 23.6% from the year-earlier quarter's actual. Management expects revenues in the ra ...

Company Performance - Shares of Onto Innovation (ONTO) experienced a loss of 14.01% over the previous month, underperforming the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21% [1] - In the latest trading session, Onto Innovation closed at $189.08, marking a +0.15% move from the prior day, outperforming the S&P 500's daily gain of 0.08% [6] Earnings Estimates - For the upcoming earnings report on August 8, 2024, Onto Innovation is anticipated to report an EPS of $1.19, reflecting a 50.63% increase compared to the same quarter of the previous year [7] - The consensus estimate for quarterly revenue is $235.6 million, which represents a 23.57% increase from the year-ago period [7] - The Zacks Consensus Estimates for the annual period project earnings of $5.05 per share and revenue of $941.16 million, indicating shifts of +35.39% and +15.36% from the last year, respectively [2] Analyst Ratings and Industry Position - Onto Innovation currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing a strong track record of outperforming the market [9] - The Nanotechnology industry, which includes Onto Innovation, has a Zacks Industry Rank of 3, placing it within the top 2% of over 250 industries [4] Valuation Metrics - Onto Innovation is currently traded at a Forward P/E ratio of 37.39, which is a premium compared to the industry's average Forward P/E of 29.89 [11]

The maker of semiconductor manufacturing equipment's stock has dropped by 2.26% in the past month, falling short of the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Onto Innovation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the comp ...

Prior to today's trading, shares of the maker of semiconductor manufacturing equipment had gained 4.48% over the past month. This has outpaced the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78% in that time. Any recent changes to analyst estimates for Onto Innovation should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's bu ...

Core Viewpoint - The article discusses the importance of momentum investing and highlights Onto Innovation (ONTO) as a strong candidate for momentum-based investment due to its recent performance and positive earnings outlook. Group 1: Momentum Investing - Momentum investing focuses on following a stock's recent price trends, with the expectation that a stock will continue in the same direction once a trend is established [7] - The Zacks Momentum Style Score is a tool that helps identify stocks with strong momentum, incorporating metrics like price changes and earnings estimate revisions [12] Group 2: Onto Innovation Performance - Onto Innovation has shown significant price appreciation, with shares increasing by 35.36% over the past quarter and 105.12% over the last year, compared to the S&P 500's gains of 10% and 27.2% respectively [4] - The stock currently holds a Zacks Rank of 2 (Buy) and a Momentum Score of A, indicating strong potential for future performance [6] Group 3: Earnings Outlook - In the past two months, one earnings estimate for Onto Innovation has increased, raising the consensus estimate from $5.01 to $5.05 for the full year, with no downward revisions [5] - For the next fiscal year, one estimate has also moved upwards, reflecting positive sentiment regarding the company's earnings potential [5] Group 4: Trading Volume and Industry Comparison - Onto Innovation's shares have increased by 0.39% over the past week, while the Zacks Nanotechnology industry has remained flat during the same period [10] - The average 20-day trading volume for Onto Innovation is 849,238 shares, which is considered a bullish sign when combined with rising stock prices [11]

Industry Overview - The AICS market is rapidly evolving, with challenges in organic substrate redistribution layers (RDLs) using copper clad laminate (CCL) below 3µm, leading manufacturers to adopt glass as a more stable substrate [1] - The AICS market is projected to grow at a compound annual growth rate (CAGR) of 10% from 2023 to 2028 [7] Company Developments - Onto Innovation (ONTO) has launched a glass substrate suite that includes the JetStep X500 panel-level packaging lithography system and the Firefly G3 sub-micron automatic metrology and inspection system, aimed at meeting the demands of the advanced IC substrates market [7] - The Firefly G3 system utilizes Onto's patented Clearfield technology and unique 3D metrology sensors to address critical challenges such as cracks, chips, and TGV metrology for vias [5] - The company is experiencing strong demand across various end markets and has accelerated the adoption of its Dragonfly platforms, with a new sub-surface inspection capability launched in April 2024 [6] Financial Performance - Onto Innovation has a Zacks Rank 1 (Strong Buy) and its stock has increased by 119% over the past year, outperforming the industry growth of 103.6% [3] - The company has delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47% [4]

When it comes to the manufacturing of advanced semiconductors used in artificial intelligence (AI) systems, there is a little-known segment of the industry that acts as the gatekeeper: metrology equipment. A key to making more advanced chips Thus, think of metrology equipment as a type of final step in building AI systems, a type of gatekeeper to unlocking more powerful computing. Can the Onto party continue? Management is forecasting another step-up in revenue and profitability in Q2, with the high end of ...

Core Viewpoint - Onto Innovation (ONTO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4][9] Earnings Estimate Revisions - The Zacks Rank upgrade reflects an improvement in Onto Innovation's underlying business, suggesting that investors may respond positively, leading to a potential increase in stock price [4][9] - Over the past three months, the Zacks Consensus Estimate for Onto Innovation has increased by 7.5% [12] - The expected earnings per share for the fiscal year ending December 2024 is projected to be $5.05, representing a year-over-year increase of 35.4% [13] Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [8] - Stocks rated Zacks Rank 1 are in the top 5% of Zacks-covered stocks in terms of estimate revisions, indicating a strong potential for price movement [7][14] - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [11]

Industry Overview - The Nanotechnology industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 97, which places it in the top 39% of over 250 industries [1] Company Performance - Onto Innovation is forecasted to report an EPS of $1.19, reflecting a 50.63% increase from the same quarter last year, with revenue expected to be $235.6 million, indicating a 23.57% year-over-year increase [2] - For the entire year, Zacks Consensus Estimates predict earnings of $5.05 per share and revenue of $941.16 million, representing increases of +35.39% and +15.36% compared to the previous year [3] Analyst Sentiment - Recent adjustments to analyst estimates for Onto Innovation indicate a favorable outlook on the company's business health and profitability, with positive revisions suggesting a strong near-term business trend [4] - The Zacks Rank system, which has a strong track record of outperformance, currently rates Onto Innovation as 2 (Buy) [7] Valuation Metrics - Onto Innovation has a Forward P/E ratio of 44.27, which is a premium compared to the industry's average Forward P/E of 33.41 [6] Stock Performance - The most recent trading session saw Onto Innovation's stock at $219.45, down 1.85% from the previous day's close, underperforming the S&P 500, which had a daily loss of 0.04% [9] - Over the past month, Onto Innovation's shares have decreased by 0.17%, which is better than the Computer and Technology sector's loss of 2.27% and lagging behind the S&P 500's gain of 4.15% [10]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Onto Innovation currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 1.33 approxim ...