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

Ultra Clean Holdings (UCTT) closed at $51.98 in the latest trading session, marking a +0.91% move from the prior day. This move outpaced the S&P 500's daily loss of 0.11%.

Prior to today's trading, shares of the chipmaking equipment services company had lost 3.34% over the past month. This has lagged the Computer and Technology sector's gain of 7.15% and the S&P 500's gain of 2.23% in that time.

Wall Street will be looking for positivity from UCTT as it approaches its next earnings report date. On that day, UCTT is projected to report earnings of $0.95 per share, which would represent year-over-year growth of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $507.61 million, up 47.23% from the year-ago period.

UCTT's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $2 billion. These results would represent year-over-year changes of +37.86% and +42.87%, respectively.

It is also important to note the recent changes to analyst estimates for UCTT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 #2 (Buy).

Looking at its valuation, UCTT is holding a Forward P/E ratio of 13.35. This valuation marks a discount compared to its industry's average Forward P/E of 18.23.

Also, we should mention that UCTT has a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UCTT's industry had an average PEG ratio of 1.03 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 59, putting it in the top 24% 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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