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

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Ultra Clean Holdings (UCTT) closed at $51.14 in the latest trading session, marking a -1.43% move from the prior day. This move lagged the S&P 500's daily gain of 0.24%.

Prior to today's trading, shares of the chipmaking equipment services company had lost 1.89% over the past month. This has lagged the Computer and Technology sector's gain of 2.93% and the S&P 500's gain of 4.09% 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 August 2, 2021. In that report, analysts expect UCTT to post earnings of $0.95 per share. This would mark year-over-year growth of 26.67%. Our most recent consensus estimate is calling for quarterly revenue of $507.61 million, up 47.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.86 per share and revenue of $2 billion, which would represent changes of +37.86% and +42.87%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for UCTT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. UCTT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, UCTT is holding a Forward P/E ratio of 13.44. This represents a discount compared to its industry's average Forward P/E of 16.49.

Meanwhile, UCTT's PEG ratio is currently 1.68. 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. The Electronics - Manufacturing Machinery industry currently had an average PEG ratio of 1 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 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges 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 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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