Ultra Clean Holdings (UCTT) Wins When Market Falls: What You Should Know
In the last trading session, Ultra Clean Holdings (UCTT) closed at $ 46.72, a move of + 0.34% from the previous day.
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September 3, 2021
3 minutes read
This story originally appeared on Zacks
Ultra Clean Holdings (UCTT) closed at USD 46.72 in the last trading session, a move of + 0.34% from the previous day. The stock exceeded the S&P 500’s daily loss of 0.03%.
Today, shares in the chip manufacturing equipment service company were down 2.47% over the past month. Over the same period, the computer and technology sector rose 4.91% while the S&P 500 rose 3.59%.
UCTT will look to show strength as it nears its next earnings release. On that day, UCTT is expected to post earnings of $ 1 per share, a year-over-year growth of 36.99%. Our latest consensus estimate was for quarterly revenue of $ 543.97 million, up 49.74% from the same period last year.
UCTT’s Zacks Consensus Estimates for the full year project earnings per share of $ 3.90 and sales of $ 2.03 billion. These results would represent changes of +39.29% and +44.92% respectively compared to the previous year.
It is also important to note the recent changes in analyst estimates for UCTT. Most recent revisions usually reflect the latest short-term business trends. Therefore, we can interpret positive valuation revisions as a good sign of 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 ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable track record of externally audited, with the number 1 stocks posting an average annual return of + 25% since 1988. Last month, Zack’s Consensus EPS estimate rose 0.75%. UCTT currently holds a Zacks rank of # 3 (Hold).
Looking at the valuation, UCTT holds a forward P / E of 11.94. The industry has an average forward P / E of 15.56, so we can conclude that UCTT is trading at a discount by comparison.
Investors should also note that UCTT currently has a PEG ratio of 1.49. 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. Electronics – Manufacturing Machinery shares hold an average PEG-Ratio of 0.94, based on yesterday’s closing prices.
The electronics manufacturing machinery industry is part of the computers and technology sector. This industry currently has a Zacks industry rank of 48, making it the top 19% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks rank of the individual stocks 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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