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Ultra Clean Holdings (UCTT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Ultra Clean Holdings (UCTT) closed the most recent trading day at $23.22, moving +0.91% from the previous trading session. This change outpaced the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 1.34%.

Coming into today, shares of the chipmaking equipment services company had lost 0.43% in the past month. In that same time, the Computer and Technology sector gained 2.97%, while the S&P 500 0%.

UCTT will be looking to display strength as it nears its next earnings release. On that day, UCTT is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $270.20 million, up 4.98% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for UCTT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UCTT is currently a Zacks Rank #3 (Hold).

Digging into valuation, UCTT currently has a Forward P/E ratio of 16.44. This valuation marks a discount compared to its industry's average Forward P/E of 20.98.

Investors should also note that UCTT has a PEG ratio of 1.17 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UCTT's industry had an average PEG ratio of 14.54 as of yesterday's close.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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