Ultra Clean Holdings (UCTT) wins but lags in the market: What you need to know – September 23, 2021
Ultra own funds (UCTT – Free Report) closed at $ 47.20 in the last trading session, marking a movement of +1.07% from the previous day. The stock was below the S&P 500’s 1.21% daily gain.
Prior to today’s session, shares of the chipmaking equipment services company had gained 6.52% over the past month. This topped the 1.28% gain of the IT and tech sector and the 0.9% loss of the S&P 500 during this period.
UCTT will seek to show its strength as the next publication of its results approaches. The company is expected to post EPS of $ 1, up 36.99% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 543.97 million, up 49.74% from the previous year’s quarter.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 3.90 per share and revenue of $ 2.03 billion. These totals would mark changes of + 39.29% and + 44.92%, respectively, compared to last year.
It’s also important to note the recent changes to analyst estimates for UCTT. Recent revisions tend to reflect the latest short-term business trends. 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 short-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained stagnant. UCTT currently sports a Zacks rank of # 3 (Hold).
Investors should also note UCTT’s current valuation metrics, including its forward P / E ratio of 11.97. This valuation marks a discount compared to the average Forward P / E for its sector of 15.33.
We can also see that UCTT currently has a PEG ratio of 1.5. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. The Electronics Industry – Manufacturing Machinery currently had an average PEG ratio of 0.94 at yesterday’s close.
The Electronics – Manufacturing Machinery industry is part of the Information Technology and Technology sector. This group has a Zacks Industry Rank of 50, placing it in the top 20% of the 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.