What Makes Onto Innovation (ONTO) a Strong Momentum Stock: Buy Now?

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]