Ultra Clean Holdings (UCTT) Stock Moves -0.26%: What You Should Know
This story originally appeared on Zacks
Ultra Clean Holdings (UCTT) closed at USD 46.17 in the last trading session, a move of -0.26% from the previous day. That change was smaller than the S&P 500’s 0.77% loss that day.
Today, shares in the chip manufacturing service company were up 6.51% over the past month, outperforming the computer and technology sector’s 3.13% gain and the S&P 500’s 1.55% gain over the period.
Wall Street will look to the UCTT for positivity as it nears its next earnings reporting date. On that day, UCTT is expected to post earnings of $ 1 per share, a year-over-year growth of 36.99%. Meanwhile, our latest consensus estimate sees revenue of $ 543.97 million, up 49.74% from the year-ago quarter.
For the full year, our Zacks Consensus Estimates project earnings per share of $ 3.90 and revenue of $ 2.03 billion, a year-over-year change of + 39.29% and + 44.92%, respectively would correspond.
Investors should also be aware of any recent changes in analyst estimates for UCTT. These revisions help highlight the ever-changing nature of short-term business trends. With this in mind, we can view positive valuation revisions as a sign of optimism about the company’s business outlook.
Based on our research, we believe these valuation revisions are directly related to team-based stock movements. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these estimation changes into account and provides an actionable rating system.
The Zacks Rank system ranges from # 1 (strong buy) to # 5 (strong sell) and has a proven, externally audited track record of outperformance. The EPS estimate remained flat over the past month. UCTT is currently a Zacks Rank # 3 (Hold).
Looking at the valuation, UCTT holds a forward P / E of 11.87. The industry has an average forward P / E of 15.65, so we can conclude that UCTT is trading at a discount by comparison.
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, except 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 at the close of trading yesterday.
The electronics manufacturing machinery industry is part of the computer and technology sector. This group has a Zacks industry ranking of 92, making it one of the top 37% of all over 250 industries.
The Zacks Industry Rank measures the strength of our individual industry groups by measuring the average Zacks rank of each stock within the groups. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
To keep track of UCTT in the upcoming trading sessions, be sure to use Zacks.com.
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