Onto Innovation (ONTO) Outperforms Broader Market: What You Need to Know

Onto Innovation (ONTO) closed at $214.08 in the latest trading session, marking a +2.68% move from the prior day. This change outpaced the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.9%.

The maker of semiconductor manufacturing equipment's stock has climbed by 9.94% in the past month, exceeding the Computer and Technology sector's loss of 1.96% and the S&P 500's loss of 0.16%.

The upcoming earnings release of Onto Innovation will be of great interest to investors. The company's earnings report is expected on February 19, 2026. On that day, Onto Innovation is projected to report earnings of $1.27 per share, which would represent a year-over-year decline of 15.89%. In the meantime, our current consensus estimate forecasts the revenue to be $266.11 million, indicating a 0.82% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $1 billion, which would represent changes of -7.12% and +1.74%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Onto Innovation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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 has moved 1.48% higher. Onto Innovation is currently a Zacks Rank #2 (Buy).

In terms of valuation, Onto Innovation is presently being traded at a Forward P/E ratio of 34.58. This denotes no noticeable deviation relative to the industry average Forward P/E of 34.58.

We can additionally observe that ONTO currently boasts a PEG ratio of 1.15. 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. As of the close of trade yesterday, the Nanotechnology industry held an average PEG ratio of 1.15.

The Nanotechnology industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

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This article originally published on Zacks Investment Research (zacks.com).

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