Why Onto Innovation Is A Still A Buy After More Than Doubling In 4 Years

Chris LauInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryOnto Innovation has delivered over 220% returns since 2022, outperforming the S&P 500 and maintaining strong momentum.ONTO's Q4 saw record revenue and cash generation, but revenue growth was minimal at 1.1% Y/Y, with gross margin declining to 46.4%.Advanced packaging and specialty devices now drive over half of ONTO's revenue, with management targeting a $2 billion run rate via capacity expansion.I reiterate a Buy rating, citing relative value, sector momentum, and strong positioning in AI-driven semiconductor capital equipment growth.Looking for more investing ideas like this one? Get them exclusively at DIY Value Investing. Learn More » akinbostanci/iStock via Getty Images In 2022, Onto Innovation (ONTO) offered investors an entry point after the stock dipped. In that time, the company rewarded shareholders with an over 220% return. This beat the S&P 500 (This article was written byChris Lau36.19K FollowersFollowChris Lau is an individual investor and economist with 30 years of experience covering life science, technology, and dividend-growth income stocks. He has degrees in Microbiology and Economics. Chris runs the investing group DIY Value Investing where he shares his top stock picks of undervalued stocks with catalysts for upside, dividend-income recommendations with quant and payment calendar tracking, high upside plays, and research requests to help you become a better do-it-yourself investor. Flagship Products:1. Top DIY Picks: Undervalued stocks have upcoming catalysts that markets do not expect.2. Dividend-income Champs that have a long history of dividend growth. Includes printable calendar and quantitative scores. 3. DIY Community Picks for a speculative allocation positive momentum.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.