Ultra Clean Holdings Inc. Stock Upgraded (UCTT)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Ultra Clean Holdings (Nasdaq: UCTT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 6.0%. Since the same quarter one year prior, revenues rose by 40.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 112.05% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UCTT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ULTRA CLEAN HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ULTRA CLEAN HOLDINGS INC increased its bottom line by earning $0.36 versus $0.24 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.36).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 642.7% when compared to the same quarter one year prior, rising from -$1.17 million to $6.37 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ULTRA CLEAN HOLDINGS INC's return on equity is below that of both the industry average and the S&P 500.

Ultra Clean Holdings, Inc., together with its subsidiaries, designs, develops, prototypes, engineers, manufactures, and tests subsystems tailored to specific steps in the semiconductor manufacturing process and manufacturing processes in other industries. Ultra Clean has a market cap of $377 million and is part of the technology sector and electronics industry. Shares are up 31.5% year to date as of the close of trading on Friday.

You can view the full Ultra Clean Ratings Report or get investment ideas from our investment research center.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Like Your Market With a Little Froth?

Strong Action in Individual Stocks Starts to Feel a Bit Frothy

Good Stocks Are There for the Picking

Those Who Anticipate a Market Disaster Are Paying a Disastrous Price

Rev's Forum: Anticipating Disaster Seems Smart but Carries a Hefty Cost