ONTO - Onto Innovation: Impressive Growth But Unappealing Price

2024-02-02 09:15:37 ET

Summary

• Onto Innovation's stock price has exhibited a 120% return in the last 12 months, outperforming the broader markets.
• The company specializes in process control equipment and software for the semiconductor industry and holds a strong position in the market.
• The high valuation of Onto Innovation raises concerns about its sustainability and potential for a market correction.

Investment Rundown

The stock price of Onto Innovation Inc (ONTO) has been on a roaring uptrend for the last 12 months, exhibiting a 120% return, heavily outperforming the broader markets. However, the question arises of how long ONTO can maintain its recent years of explosive growth. It seems to be heavily tied to decreasing interest rates, to help free up capital and increase demand for ONTO and its products. The risk that seems to persist is that if demand doesn't resume as quickly as the market anticipates, then the share price could be in a free fall after running up so fast....

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