Back to top

Image: Bigstock

ON Semiconductor Corp. (ON) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

The most recent trading session ended with ON Semiconductor Corp. (ON - Free Report) standing at $71.51, reflecting a +0.65% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.08%.

The semiconductor components maker's stock has climbed by 0.41% in the past month, falling short of the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.

The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. The company is forecasted to report an EPS of $0.97, showcasing a 30.22% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.75 billion, showing a 19.77% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.01 per share and revenue of $7.13 billion, indicating changes of -22.29% and -13.6%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for ON Semiconductor Corp. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #4 (Sell).

Looking at valuation, ON Semiconductor Corp. is presently trading at a Forward P/E ratio of 17.72. This indicates a discount in contrast to its industry's Forward P/E of 35.26.

We can also see that ON currently has a PEG ratio of 3.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ON's industry had an average PEG ratio of 3.17 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ON in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ON Semiconductor Corporation (ON) - free report >>

Published in