The Zacks Computer and Technology sector has tumbled in 2022 amid a hawkish pivot from the Fed, down more than 30% and widely underperforming the S&P 500.
A big-time player in the realm, onsemi (ON - Free Report) , also known as ON Semiconductor, is on deck to unveil quarterly results before the market open on October 31st.
ON Semiconductor is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. Spun off from Motorola in 1999, the company performed its IPO in May 2000.
Currently, the semiconductor giant carries a Zacks Rank #4 (Sell) paired with an overall VGM Score of a B.
Let’s dive deeper into how onsemi stacks up heading into its print.
Share Performance & Valuation
ON shares have been a bright spot in an otherwise dim market for semiconductor stocks, down roughly 5% and easily outperforming the S&P 500.
Over the last three months, ON shares have continued on their market-beating trajectory, up a marginal 0.2%.
ON Semiconductor shares appear fairly priced; the company’s 13.2X forward earnings multiple is nicely below its 14.3X five-year median, representing a 38% discount relative to its Zacks Computer and Technology sector.
The company carries a Style Score of a C for Value.
Quarterly Estimates
A singular analyst has lowered their earnings outlook for the quarter to be reported. Still, the Zacks Consensus EPS Estimate of $1.31 suggests Y/Y earnings growth of a double-digit 50%.
ON’s top-line is also in solid health; the Zacks Consensus Sales Estimate of $2.1 billion suggests Y/Y revenue growth of more than 20%.
Quarterly Performance & Market Reactions
ON carries a blazing-hot earnings track record, exceeding both revenue and earnings estimates in nine consecutive quarters.
Just in its latest print, the semiconductor giant posted a 6.4% bottom-line beat and a 3.4% revenue beat.
The market has primarily cheered on the company’s quarterly results, with shares moving upward following four of its last five prints.
Putting Everything Together
ON shares have been notably stronger than the general market YTD, outperforming the S&P 500 across several timeframes.
Shares appear fairly priced, with the company’s forward earnings multiple below its five-year median and Zacks Sector average.
A singular analyst has lowered their quarterly outlook, with estimates suggesting Y/Y upticks in both revenue and earnings.
The company has consistently exceeded quarterly estimates, and the market has liked what it’s seen from ON across the majority of its last five releases.
Heading into the print, onsemi (ON - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -0.4%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
The Zacks Computer and Technology sector has tumbled in 2022 amid a hawkish pivot from the Fed, down more than 30% and widely underperforming the S&P 500.
A big-time player in the realm, onsemi (ON - Free Report) , also known as ON Semiconductor, is on deck to unveil quarterly results before the market open on October 31st.
ON Semiconductor is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. Spun off from Motorola in 1999, the company performed its IPO in May 2000.
Currently, the semiconductor giant carries a Zacks Rank #4 (Sell) paired with an overall VGM Score of a B.
Let’s dive deeper into how onsemi stacks up heading into its print.
Share Performance & Valuation
ON shares have been a bright spot in an otherwise dim market for semiconductor stocks, down roughly 5% and easily outperforming the S&P 500.
Over the last three months, ON shares have continued on their market-beating trajectory, up a marginal 0.2%.
ON Semiconductor shares appear fairly priced; the company’s 13.2X forward earnings multiple is nicely below its 14.3X five-year median, representing a 38% discount relative to its Zacks Computer and Technology sector.
The company carries a Style Score of a C for Value.
Quarterly Estimates
A singular analyst has lowered their earnings outlook for the quarter to be reported. Still, the Zacks Consensus EPS Estimate of $1.31 suggests Y/Y earnings growth of a double-digit 50%.
ON’s top-line is also in solid health; the Zacks Consensus Sales Estimate of $2.1 billion suggests Y/Y revenue growth of more than 20%.
Quarterly Performance & Market Reactions
ON carries a blazing-hot earnings track record, exceeding both revenue and earnings estimates in nine consecutive quarters.
Just in its latest print, the semiconductor giant posted a 6.4% bottom-line beat and a 3.4% revenue beat.
The market has primarily cheered on the company’s quarterly results, with shares moving upward following four of its last five prints.
Putting Everything Together
ON shares have been notably stronger than the general market YTD, outperforming the S&P 500 across several timeframes.
Shares appear fairly priced, with the company’s forward earnings multiple below its five-year median and Zacks Sector average.
A singular analyst has lowered their quarterly outlook, with estimates suggesting Y/Y upticks in both revenue and earnings.
The company has consistently exceeded quarterly estimates, and the market has liked what it’s seen from ON across the majority of its last five releases.
Heading into the print, onsemi (ON - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -0.4%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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