ONTO INNOVATION INC (NYSE:ONTO)—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

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.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. ONTO was assigned a score of 9 for growth:

• ONTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.43%, which is quite impressive.
• ONTO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.96% yearly.
• The Revenue has grown by 21.00% in the past year. This is a very strong growth!
• The Revenue has been growing by 26.41% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 21.31% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 16.21% on average over the next years. This is quite good.

How do we evaluate the Health for ONTO?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. ONTO has achieved a 9 out of 10:

• An Altman-Z score of 20.35 indicates that ONTO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ONTO (20.35) is better than 92.66% of its industry peers.
• ONTO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• ONTO has a Current Ratio of 8.69. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 8.69, ONTO belongs to the top of the industry, outperforming 95.41% of the companies in the same industry.
• ONTO has a Quick Ratio of 7.00. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 7.00, ONTO belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.

How do we evaluate the Profitability for ONTO?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. ONTO has earned a 7 out of 10:

• ONTO has a better Return On Assets (9.53%) than 77.98% of its industry peers.
• ONTO has a Return On Equity of 10.47%. This is in the better half of the industry: ONTO outperforms 67.89% of its industry peers.
• The Return On Invested Capital of ONTO (9.57%) is better than 77.06% of its industry peers.
• ONTO has a better Profit Margin (20.43%) than 82.57% of its industry peers.
• ONTO's Profit Margin has improved in the last couple of years.
• The Operating Margin of ONTO (20.64%) is better than 79.82% of its industry peers.
• ONTO's Gross Margin of 53.88% is fine compared to the rest of the industry. ONTO outperforms 75.23% of its industry peers.
• In the last couple of years the Gross Margin of ONTO has grown nicely.

How does the Setup look for ONTO

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, ONTO exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

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 very little resistance above the current price. There is a support zone below the current price at 104.44, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

For an up to date full technical analysis you can check the technical report of ONTO

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.