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ON Semiconductor Corp. (ON) Stock Sinks As Market Gains: Here's Why

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ON Semiconductor Corp. (ON - Free Report) closed the latest trading day at $78.39, indicating a -1.27% change from the previous session's end. This change lagged the S&P 500's 0.46% gain on the day. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.7%.

The the stock of semiconductor components maker has risen by 19.13% in the past month, leading the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85%.

The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. On that day, ON Semiconductor Corp. is projected to report earnings of $1.21 per share, which would represent a year-over-year decline of 8.33%. In the meantime, our current consensus estimate forecasts the revenue to be $2 billion, indicating a 4.82% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.13 per share and revenue of $8.24 billion, indicating changes of -3.75% and -0.99%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. ON Semiconductor Corp. presently features a Zacks Rank of #4 (Sell).

From a valuation perspective, ON Semiconductor Corp. is currently exchanging hands at a Forward P/E ratio of 15.48. This indicates a discount in contrast to its industry's Forward P/E of 26.99.

One should further note that ON currently holds a PEG ratio of 3.84. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 3.84.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 18% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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