NYSE:ONTO, a strong growth stock, setting up for a breakout.

In this article we will dive into ONTO INNOVATION INC (NYSE:ONTO) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ONTO INNOVATION INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Assessment of NYSE:ONTO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ONTO has earned a 8 for growth:

• 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.
• The Revenue has grown by 10.80% in the past year. This is quite good.
• The Revenue has been growing by 20.25% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 25.86% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 17.86% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Assessment of NYSE:ONTO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ONTO, the assigned 8 reflects its health status:

• ONTO has an Altman-Z score of 32.02. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 32.02, ONTO belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
• There is no outstanding debt for ONTO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• ONTO has a Current Ratio of 10.07. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 10.07, ONTO belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
• 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.
• Looking at the Quick ratio, with a value of 7.94, ONTO belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.

Evaluating Profitability: 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:

• ONTO has a Return On Assets of 8.83%. This is in the better half of the industry: ONTO outperforms 75.00% of its industry peers.
• ONTO's Return On Equity of 9.62% is fine compared to the rest of the industry. ONTO outperforms 66.67% of its industry peers.
• With a decent Return On Invested Capital value of 7.38%, ONTO is doing good in the industry, outperforming 74.07% of the companies in the same industry.
• With a decent Profit Margin value of 19.44%, ONTO is doing good in the industry, outperforming 78.70% of the companies in the same industry.
• ONTO's Operating Margin of 19.12% is fine compared to the rest of the industry. ONTO outperforms 75.93% of its industry peers.
• With a decent Gross Margin value of 52.87%, ONTO is doing good in the industry, outperforming 70.37% of the companies in the same industry.

Why is NYSE:ONTO a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:ONTO this score is currently 7:

ONTO has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 170.07, 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.

Check the latest full technical report of ONTO for a complete technical analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.