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ON Semiconductor Corp. (ON) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, ON Semiconductor Corp. (ON - Free Report) closed at $71.71, marking a -1.35% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.07%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.36%.

Coming into today, shares of the semiconductor components maker had lost 14.46% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 3.05%.

Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2024. The company is forecasted to report an EPS of $1.21, showcasing an 8.33% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, down 4.83% from the prior-year quarter.

Any recent changes to analyst estimates for ON Semiconductor Corp. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. ON Semiconductor Corp. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ON Semiconductor Corp. currently has a Forward P/E ratio of 14.91. This represents a discount compared to its industry's average Forward P/E of 29.17.

It is also worth noting that ON currently has a PEG ratio of 3.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 3.7 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 204, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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