Zacks Investment Research upgraded
Ultra Clean Holdings Inc.
) to a Zacks Rank #1 (Strong Buy) on Mar 11, 2014. Going by the
Zacks model, the companies holding a Zacks Rank #1 have strong
chances of performing better than the broader market.
CANADIAN SOLAR (CSIQ): Free Stock Analysis
SOLARCITY CORP (SCTY): Free Stock Analysis
TESSERA TEC INC (TSRA): Free Stock Analysis
ULTRA CLEAN HLD (UCTT): Free Stock Analysis
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Why the Upgrade?
Ultra Clean Holdings reported impressive fourth-quarter 2013
results on Feb 18, 2014. Since then, shares of the company have
spiraled up 20.3%. Earnings per share in the quarter were 26
cents, surpassing the Zacks Consensus Estimate of 23 cents 13.0%.
Revenues in the quarter increased 40.2% year over year to $126.0
million. Of total revenue, roughly 93.7% was Semiconductor
revenue. Revenue generated from international operations was
29.1%. Gross margin increased 430 basis points year over year to
For first-quarter 2014, Ultra Clean Holdings anticipates revenues
to be within the $135-$140 million range and adjusted earnings
per share to be within 28-31 cents. At mid-points, the revenue
guidance reflects a sequential increase of 9.1% while the
earnings guidance is a 13.5% increase over the previous quarter.
Fourth-quarter 2013 results triggered upward revisions in
earnings estimates for Ultra Clean Holdings. In the last 30 days,
the Zacks Consensus Estimate has increased 33.8% to $1.07 for
2014. The estimate also reflects year-over-year growth of 102.4%.
Earnings growth for the next 5 years is predicted to be 11.5%.
Earnings growth rates as well as a positive average earnings
surprise of 11.8% have made us optimistic about Ultra Clean
Holdings' performance in the coming quarters.
Other Stocks to Consider
Ultra Clean Holdings is a $39.9 million company operating in the
semiconductor industry. Other stocks worth considering in the
Tessera Technologies Inc.
Canadian Solar Inc.
). While Tessera Technologies and Canadian Solar carry a Zacks
Rank #1 (Strong Buy), SolarCity Corporation holds a Zacks Rank #2