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Why Onto Innovation (ONTO) is a Top Growth Stock for the Long-Term

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

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 is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of A and VGM Score of B. Earnings are expected to grow 33.7% year-over-year for the current fiscal year, with sales growth of 24%.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.29 to $5.16 per share. ONTO boasts an average earnings surprise of 11.3%.

On a historic basis, Onto Innovation has generated cash flow growth of 48.8%, and is expected to report cash flow expansion of 48.5% this year.

Investors should take the time to consider ONTO for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.


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