NYSE:ONTO—A High-Growth Stock Gearing Up for Its Next Upward Move.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether ONTO INNOVATION INC (NYSE:ONTO) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but ONTO INNOVATION INC has surfaced on our radar for growth with base formation, warranting further examination.

What does the Growth looks like for NYSE:ONTO

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ONTO scores a 8 out of 10:

• ONTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.57%, which is quite good.
• Measured over the past years, ONTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.40% on average per year.
• ONTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.80%.
• Measured over the past years, ONTO shows a very strong growth in Revenue. The Revenue has been growing by 20.25% on average per year.
• Based on estimates for the next years, ONTO will show a very strong growth in Earnings Per Share. The EPS will grow by 29.23% on average per year.
• Based on estimates for the next years, ONTO will show a quite strong growth in Revenue. The Revenue will grow by 17.85% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NYSE:ONTO's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ONTO, the assigned 8 for health provides valuable insights:

• ONTO has an Altman-Z score of 30.03. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 30.03, ONTO belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
• ONTO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 10.07 indicates that ONTO has no problem at all paying its short term obligations.
• ONTO has a better Current ratio (10.07) than 97.22% of its industry peers.
• ONTO has a Quick Ratio of 7.94. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 7.94, ONTO belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.

How do we evaluate the Profitability for NYSE:ONTO?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ONTO, the assigned 5 is a significant indicator of profitability:

• With a decent Return On Assets value of 8.83%, ONTO is doing good in the industry, outperforming 74.07% of the companies in the same industry.
• The Return On Equity of ONTO (9.62%) is better than 65.74% of its industry peers.
• ONTO's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. ONTO outperforms 74.07% of its industry peers.
• ONTO has a better Profit Margin (19.44%) than 77.78% of its industry peers.
• ONTO's Operating Margin of 19.12% is fine compared to the rest of the industry. ONTO outperforms 75.93% of its industry peers.
• ONTO's Gross Margin of 52.87% is fine compared to the rest of the industry. ONTO outperforms 70.37% of its industry peers.

How does the Setup look for NYSE:ONTO

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:ONTO currently has a 7 as setup rating:

Although the technical rating is bad, ONTO does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 166.30. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 158.45, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of ONTO contains the most current fundamental analsysis.

Our latest full technical report of ONTO contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.