10 Best GARP Stocks to Buy Now

6. Onto Innovation Inc. (NYSE:ONTO)

Fwd. P/E: 21

Expected EPS Growth Next FY: 21%

Number of Hedge Fund Holders: 50

Upside Potential: 86%

Onto Innovation Inc. (NYSE:ONTO) specializes in designing, developing, and manufacturing inspection and measurement tools for the semiconductor industry. Its products help ensure the quality of both patterned and unpatterned wafers, detect defects, and analyze production processes. The company also offers software solutions for process control and lithography systems used in wafers and panel substrates.

On February 6, Onto Innovation Inc. (NYSE:ONTO) reported stronger-than-expected Q4 2024 financial results. Revenue for the quarter reached $264 million, marking a 21% year-over-year increase, while adjusted EPS came in at $1.51, both exceeding consensus estimates. For Q1 2025, the company expects revenue between $260 million and $274 million, implying around 1% quarter-over-quarter growth at the midpoint, while adjusted EPS guidance of $1.40 to $1.54 suggests a 3% decline from Q4.

Despite the solid results, the stock fell over 11% on February 7. Combined with the 14% sell-off on January 27 related to DeepSeek concerns, the stock is down 20% year-to-date, now trading at $133, near the lower end of its 52-week range.

Onto Innovation Inc. (NYSE:ONTO) currently has a consensus Buy rating with a 1-year median price target of $247.50. Acknowledging near-term AI-driven inventory digestion, an Oppenheimer analyst revised his earnings estimates and price target downward to $240 from $275, while maintaining an Outperform rating, expecting demand to rebound in 2026.