Here's Why Onto Innovation (ONTO) is a Strong Growth Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Onto Innovation (ONTO)
Headquartered in Wilmington, MA, Onto Innovation operates as the leading manufacturer of avant-garde process control tools that perform macro defect inspections and metrology, and lithography systems. The company was formed through a merger between Nanometrics Incorporated and Rudolph Technologies on Oct 25, 2019. Built on the rich legacies of these two companies, Onto Innovation has emerged as a strong player in the semiconductor equipment industry with unique perspectives across the semiconductor value chain. Its products are used in a number of high technology industries such as silicon wafer substrates, power device and data storage. The company enables customers to solve their device performance quality and reliability issues, backed by years of technical expertise.
ONTO sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of A, and has a VGM Score of B. Earnings and sales are forecasted to increase 33.7% and 24% year-over-year, respectively.
Three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.29 to $5.16 per share for 2022. ONTO boasts an average earnings surprise of 11.3%.
Onto Innovation is also cash rich. The company has generated cash flow growth of 48.8%, and is expected to report cash flow expansion of 48.5% in 2022.
ONTO should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
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