Wall Street Analysts See Onto Innovation (ONTO) as a Buy: Should You Invest?

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Onto Innovation, and emphasizes the importance of using independent research tools like the Zacks Rank for making investment decisions [1][11]. Brokerage Recommendations - Onto Innovation has an average brokerage recommendation (ABR) of 1.14, indicating a strong buy to buy sentiment, with 85.7% of recommendations being Strong Buy and 14.3% being Buy [12]. - Brokerage analysts tend to exhibit a strong positive bias in their recommendations, often leading to an overestimation of stock performance [2][6]. Zacks Rank vs. ABR - The Zacks Rank is a quantitative model based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to the ABR, which is solely based on brokerage recommendations [4][5]. - The Zacks Rank is timely and reflects the latest earnings estimates, while the ABR may not always be up-to-date [8]. Onto Innovation's Earnings Estimates - The Zacks Consensus Estimate for Onto Innovation's earnings for the current year is $5.22, which has remained unchanged over the past month, suggesting stable analyst views on the company's earnings prospects [9]. - Due to the unchanged consensus estimate and other factors, Onto Innovation holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the positive ABR [10].