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 ...

The stock is trading 4.5% below its 52-week high of $238.13, suggesting further upside potential. With healthy fundamentals and strong growth opportunities, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment. Apart from a favorable rank, ONTO has a Growth Score of B. Per Zacks' proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Growth Score of A or B offer solid investment opportunities. Factors Driving Growth Onto Innovation's per ...