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ON Semiconductor Corp. (ON) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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The latest trading session saw ON Semiconductor Corp. (ON - Free Report) ending at $69.32, denoting a +0.32% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Shares of the semiconductor components maker have depreciated by 16.71% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.48%.

Market participants will be closely following the financial results of ON Semiconductor Corp. in its upcoming release. The company is predicted to post an EPS of $1.05, indicating a 11.76% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, down 5.52% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.34 per share and a revenue of $7.56 billion, indicating changes of -15.89% and -8.37%, respectively, from the former year.

Any recent changes to analyst estimates for ON Semiconductor Corp. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ON Semiconductor Corp. has a Forward P/E ratio of 15.93 right now. This expresses a discount compared to the average Forward P/E of 32.75 of its industry.

Meanwhile, ON's PEG ratio is currently 6.69. 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.99 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 21% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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