Ultra Clean Holdings Is Now A Strong Buy: Should You Add?
Zacks Investment Research | Sep 27, 2016 09:11PM ET
Zacks Investment Research upgraded Ultra Clean Holdings Inc. (NASDAQ:UCTT) to a Zacks Rank #1 (Strong Buy) on Sep 28, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market in the near term.
Why the Upgrade?
Market sentiments have been favoring Ultra Clean Holdings since the beginning of 2016, as evident from the 34.4% rise in the company’s share price to date. Also, the company reported better-than-expected results in second-quarter 2016 with a positive earnings surprise of 25%. Earnings of 10 cents per share exceeded the Zacks Consensus Estimate of 8 cents. Revenue grew 10.4% year over year, driven by healthy semiconductor revenue.
For third-quarter 2016, Ultra Clean Holdings anticipates revenue to be within $133−$138 million, above $130 million generated in the previous quarter while earnings are predicted to be within 11−14 cents per share range, up from 10 cents in the second quarter.
Impressive results and outlook have made investors optimistic about Ultra Clean Holdings’ prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock increased by 9.1% to 12 cents per share for third-quarter 2016 and by 6.9% to 31 cents per share for 2016.
ULTRA CLEAN HLD Price and Consensus
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