Ultra Clean Holdings (UCTT) Outpaces Stock Market Gains: What You Should Know
Ultra Clean Holdings (UCTT) closed at $56.59 in the latest trading session, marking a +1.73% move from the prior day. This change outpaced the S&P 500's 0.47% gain on the day.
Coming into today, shares of the chipmaking equipment services company had gained 22.8% in the past month. In that same time, the Computer and Technology sector gained 2.06%, while the S&P 500 lost 0.12%.
Wall Street will be looking for positivity from UCTT as it approaches its next earnings report date. The company is expected to report EPS of $0.95, up 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $507.61 million, up 47.23% from the year-ago period.
UCTT's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $2 billion. These results would represent year-over-year changes of +37.86% and +42.87%, respectively.
Investors should also note any recent changes to analyst estimates for UCTT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. UCTT currently has a Zacks Rank of #2 (Buy).
Digging into valuation, UCTT currently has a Forward P/E ratio of 14.41. For comparison, its industry has an average Forward P/E of 18.2, which means UCTT is trading at a discount to the group.
Also, we should mention that UCTT has a PEG ratio of 1.8. 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 1.12 as of yesterday's close.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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