Ultra Clean Holdings (UCTT) closed at $46.17 in the latest trading session, marking a -0.26% move from the prior day. This change was narrower than the S&P 500’s 0.77% loss on the day.
Heading into today, shares of the chipmaking equipment services company had gained 6.51% over the past month, outpacing the Computer and Technology sector’s gain of 3.13% and the S&P 500’s gain of 1.55% in that time.
Wall Street will be looking for positivity from UCTT as it approaches its next earnings report date. On that day, UCTT is projected to report earnings of $1 per share, which would represent year-over-year growth of 36.99%. Meanwhile, our latest consensus estimate is calling for revenue of $543.97 million, up 49.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.90 per share and revenue of $2.03 billion, which would represent changes of +39.29% and +44.92%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UCTT. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UCTT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, UCTT is holding a Forward P/E ratio of 11.87. Its industry sports an average Forward P/E of 15.65, so we one might conclude that UCTT is trading at a discount comparatively.
Also, we should mention that UCTT has a PEG ratio of 1.48. 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. UCTT’s industry had an average PEG ratio of 0.93 as of yesterday’s close.
The Electronics – Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UCTT in the coming trading sessions, be sure to utilize Zacks.com.
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Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report
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