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

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The latest trading session saw ON Semiconductor Corp. (ON - Free Report) ending at $75.04, denoting a -1.55% adjustment from its last day's close. This change lagged the S&P 500's 0.23% gain on the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

Heading into today, shares of the semiconductor components maker had gained 1.98% over the past month, outpacing the Computer and Technology sector's loss of 2.01% and lagging the S&P 500's gain of 3.96% in that time.

The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.93, marking a 30.08% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.73 billion, showing a 17.32% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $7.2 billion, which would represent changes of -25.78% and -12.78%, respectively, from the prior year.

Any recent changes to analyst estimates for ON Semiconductor Corp. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.54% fall in the Zacks Consensus EPS estimate. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #3 (Hold).

Looking at valuation, ON Semiconductor Corp. is presently trading at a Forward P/E ratio of 19.91. This valuation marks a discount compared to its industry's average Forward P/E of 38.36.

It's also important to note that ON currently trades at a PEG ratio of 3.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 3.34.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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