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ON Semiconductor Corp. (ON) Stock Falls Amid Market Uptick: What Investors Need to Know

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ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $60.05, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.87% gain on the day. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 1.11%.

The semiconductor components maker's shares have seen a decrease of 18.71% over the last month, not keeping up with the Computer and Technology sector's loss of 5.98% and the S&P 500's loss of 3.97%.

The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. The company is scheduled to release its earnings on April 29, 2024. On that day, ON Semiconductor Corp. is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 10.92%. Our most recent consensus estimate is calling for quarterly revenue of $1.85 billion, down 5.52% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.31 per share and a revenue of $7.56 billion, indicating changes of -16.47% 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.59% decrease. ON Semiconductor Corp. is holding a Zacks Rank of #4 (Sell) right now.

In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 14.08. Its industry sports an average Forward P/E of 31.28, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.

Meanwhile, ON's PEG ratio is currently 5.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.81 at the close of the market yesterday.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 4% of all 250+ industries.

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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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