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

Ultra Clean Holdings (UCTT) closed the most recent trading day at $33.32, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Prior to today's trading, shares of the chipmaking equipment services company had gained 7.36% over the past month. This has outpaced the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.1% in that time.

Wall Street will be looking for positivity from Ultra Clean Holdings as it approaches its next earnings report date. In that report, analysts expect Ultra Clean Holdings to post earnings of $1.03 per share. This would mark year-over-year growth of 4.04%. Our most recent consensus estimate is calling for quarterly revenue of $591.45 million, up 14.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.55 per share and revenue of $2.43 billion, which would represent changes of +8.33% and +15.68%, respectively, from the prior year.

Any recent changes to analyst estimates for Ultra Clean Holdings should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Ultra Clean Holdings is currently a Zacks Rank #3 (Hold).

Digging into valuation, Ultra Clean Holdings currently has a Forward P/E ratio of 7.25. For comparison, its industry has an average Forward P/E of 12.63, which means Ultra Clean Holdings is trading at a discount to the group.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.

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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