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Are You a Growth Investor? This 1 Stock Could Be the Perfect Pick

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Onto Innovation (ONTO)

Headquartered in Wilmington, MA, Onto Innovation operates as the leading manufacturer of avant-garde process control tools that perform macro defect inspections and metrology, and lithography systems. The company was formed through a merger between Nanometrics Incorporated and Rudolph Technologies on Oct 25, 2019. Built on the rich legacies of these two companies, Onto Innovation has emerged as a strong player in the semiconductor equipment industry with unique perspectives across the semiconductor value chain. Its products are used in a number of high technology industries such as silicon wafer substrates, power device and data storage. The company enables customers to solve their device performance quality and reliability issues, backed by years of technical expertise.

ONTO sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of A, and has a VGM Score of B. Earnings and sales are forecasted to increase 33.7% and 24% year-over-year, respectively.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2022, while the Zacks Consensus Estimate has increased $0.29 to $5.16 per share. ONTO also boasts an average earnings surprise of 11.3%.

On a historic basis, Onto Innovation has generated cash flow growth of 48.8%, and is expected to report cash flow expansion of 48.5% this year.

Investors should take the time to consider ONTO for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.


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Zacks Investment Research

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