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ON Semiconductor Corp. (ON) Gains As Market Dips: What You Should Know
ON Semiconductor Corp. (ON - Free Report) closed at $65.87 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, added 1.39%.
Prior to today's trading, shares of the semiconductor components maker had gained 1.56% over the past month. This has lagged the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from ON Semiconductor Corp. as it approaches its next earnings release. On that day, ON Semiconductor Corp. is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 16.51%. Meanwhile, our latest consensus estimate is calling for revenue of $2.08 billion, up 12.66% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp.These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. ON Semiconductor Corp. currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that ON Semiconductor Corp. has a Forward P/E ratio of 14.41 right now. Its industry sports an average Forward P/E of 15.9, so we one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.
Meanwhile, ON's PEG ratio is currently 0.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 0.77 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.