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

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In the latest trading session, ON Semiconductor Corp. (ON - Free Report) closed at $59.61, marking a -4.55% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.78% for the day. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 0.61%.

Coming into today, shares of the semiconductor components maker had gained 15.2% in the past month. In that same time, the Computer and Technology sector gained 8.76%, while the S&P 500 gained 5.88%.

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 earnings report is set to go public on August 4, 2025. The company's upcoming EPS is projected at $0.54, signifying a 43.75% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.45 billion, reflecting a 16.44% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.28 per share and revenue of $5.9 billion, indicating changes of -42.71% and -16.64%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. ON Semiconductor Corp. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ON Semiconductor Corp. currently has a Forward P/E ratio of 27.35. For comparison, its industry has an average Forward P/E of 39.49, which means ON Semiconductor Corp. is trading at a discount to the group.

One should further note that ON currently holds a PEG ratio of 5.15. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.17 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons 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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