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Ultra Clean Holdings (UCTT) closed the most recent trading day at $42.60, moving +1.55% from the previous trading session. This change outpaced the S&P 500’s 1.19% loss on the day.

Prior to today’s trading, shares of the chipmaking equipment services company had lost 6.86% over the past month. This has lagged the Computer and Technology sector’s loss of 5.5% and the S&P 500’s loss of 3.16% in that time.

Investors will be hoping for strength from UCTT as it approaches its next earnings release. On that day, UCTT is projected to report earnings of $1 per share, which would represent year-over-year growth of 36.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $543.97 million, up 49.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.90 per share and revenue of $2.03 billion. These totals would mark changes of +39.29% and +44.92%, respectively, from last year.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. UCTT is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, UCTT is currently trading at a Forward P/E ratio of 10.76. This represents a discount compared to its industry’s average Forward P/E of 15.3.

Investors should also note that UCTT has a PEG ratio of 1.34 right now. 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. Electronics – Manufacturing Machinery stocks are, on average, holding a PEG ratio of 0.85 based on yesterday’s closing prices.

The Electronics – Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.

To follow UCTT in the coming trading sessions, be sure to utilize Zacks.com.

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