Today I added a new small-cap stock to my portfolio, which has tremendous potential to grow in the next 2 years. The company name is Onto Innovation $ONTO. The company engages in the design, development, manufacture, and support of process control tools that perform macro-defect inspection and metrology in the US and internationally.
Why I added this:
- Semiconductor equipment exposure tied to AI and advanced packaging.
- Strong free cash flow generation.
- Healthy balance sheet.
- Low debt
- Attractive profitability versus many growth peers.
Long-term growth drivers:
- AI
- High-bandwidth memory
- chiplet architecture
- Advanced semiconductor packaging
- Electric packaging
- Data centers
- 5G infrastructure
Average Analyst target is $369.6, which has 40% upside from its current price.
Expected revenue to grow 21.66% and the EPS to grow 38.22% in the next year.
Revenue forecast:
EPS forecast:
Source: Stockanalysis