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ON Semiconductor Corp. (ON) Stock Sinks As Market Gains: What You Should Know

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ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $73.67, moving -0.01% from the previous trading session. This move lagged the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.

Coming into today, shares of the semiconductor components maker had gained 17.49% in the past month. In that same time, the Computer and Technology sector gained 12.65%, while the S&P 500 gained 5.73%.

Investors will be hoping for strength from ON Semiconductor Corp. as it approaches its next earnings release, which is expected to be February 6, 2023. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 12.66% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ON Semiconductor Corp.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. ON Semiconductor Corp. is currently a Zacks Rank #3 (Hold).

Digging into valuation, ON Semiconductor Corp. currently has a Forward P/E ratio of 16.31. This valuation marks a discount compared to its industry's average Forward P/E of 16.97.

Investors should also note that ON has a PEG ratio of 0.8 right now. 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 industry currently had an average PEG ratio of 0.81 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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