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

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Ultra Clean Holdings (UCTT) closed at $48.15 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.5%.

Heading into today, shares of the chipmaking equipment services company had gained 18.97% over the past month, outpacing the Computer and Technology sector's gain of 10.12% and the S&P 500's gain of 3.18% in that time.

Wall Street will be looking for positivity from UCTT as it approaches its next earnings report date. This is expected to be February 17, 2021. The company is expected to report EPS of $0.70, up 112.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $365.40 million, up 27.58% from the year-ago period.

Investors might also notice recent changes to analyst estimates for UCTT. Recent revisions tend to reflect the latest near-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 near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. UCTT is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note UCTT's current valuation metrics, including its Forward P/E ratio of 15.65. This valuation marks a discount compared to its industry's average Forward P/E of 19.13.

It is also worth noting that UCTT currently has a PEG ratio of 1.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UCTT's industry had an average PEG ratio of 1.96 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 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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