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Ultra Clean Holdings, Inc. (NASDAQ:UCTT) stock has touched a 52-week low, dipping to $27.84, as investors navigate through a challenging market environment. According to InvestingPro data, the company’s beta of 2.09 indicates higher volatility than the broader market, while analysts maintain a strong buy consensus with upside potential. The company, which provides critical subsystems for the semiconductor industry, has seen its shares retreat significantly over the past year, reflecting a broader sector downturn. This latest price level marks a stark contrast to the stock’s performance over the past year, with Ultra Clean Holdings experiencing a 1-year change of -19.76%. Despite these challenges, the company maintains a healthy current ratio of 2.75 and analysts expect net income growth this year. The decline to this 52-week low underscores the volatility faced by semiconductor-related businesses amidst global economic pressures and supply chain uncertainties. For deeper insights into UCTT’s valuation and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ultra Clean Holdings Inc. reported its Q4 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.51, compared to the forecast of $0.44. The company’s revenue also exceeded projections, reaching $563.3 million against the anticipated $531.01 million. Despite the strong financial performance, Ultra Clean’s stock experienced a decline in aftermarket trading. The company reported a full-year revenue growth of 21% compared to 2023, with a total revenue of $2.1 billion and a net income of $65.2 million, a significant increase from $25.2 million in the previous year. However, guidance for Q1 2025 suggests flat revenue growth, influenced by challenges in the China market due to customer-specific issues.
Needham analysts have revised Ultra Clean’s stock price target to $40.00 from $44.00, following the company’s latest financial results, but they maintain a Buy rating. Ultra Clean attributed some of its earnings shortfall to delays in product qualifications with a major Chinese customer and a drop in demand within the Chinese semiconductor market. The company forecasts a 5% growth in wafer fabrication equipment (WFE) for the year, although it anticipates a year-over-year decline of about 70% in its China segment. Despite these challenges, Ultra Clean’s management remains optimistic about exceeding overall WFE market growth.
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