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ON Semiconductor Corp. (ON) Stock Dips While Market Gains: Key Facts

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ON Semiconductor Corp. (ON - Free Report) ended the recent trading session at $52.93, demonstrating a -1.34% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.52%.

The semiconductor components maker's stock has climbed by 24.94% in the past month, exceeding the Computer and Technology sector's gain of 9.55% and the S&P 500's gain of 5.95%.

Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.54, signifying a 43.75% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.45 billion, showing a 16.44% drop compared to the year-ago quarter.

ON's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $5.9 billion. These results would represent year-over-year changes of -41.96% and -16.64%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).

Investors should also note ON Semiconductor Corp.'s current valuation metrics, including its Forward P/E ratio of 23.23. This expresses a discount compared to the average Forward P/E of 41.07 of its industry.

We can additionally observe that ON currently boasts a PEG ratio of 4.37. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.21 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 95, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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