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ON Semiconductor Corp. (ON) Suffers a Larger Drop Than the General Market: Key Insights

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ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $56.36, moving -2.91% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.74%, while the tech-heavy Nasdaq depreciated by 0.03%.

Heading into today, shares of the semiconductor components maker had gained 3.75% over the past month, lagging the Computer and Technology sector's gain of 4.58% and outpacing the S&P 500's gain of 2.68%.

The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. The company's earnings report is expected 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. Simultaneously, our latest consensus estimate expects the revenue to be $1.45 billion, showing a 16.44% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.29 per share and revenue of $5.92 billion, which would represent changes of -42.46% and -16.47%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for ON Semiconductor Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.31% higher. ON Semiconductor Corp. currently has a Zacks Rank of #2 (Buy).

From a valuation perspective, ON Semiconductor Corp. is currently exchanging hands at a Forward P/E ratio of 25.34. This valuation marks a discount compared to its industry average Forward P/E of 40.43.

It's also important to note that ON currently trades at a PEG ratio of 4.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.15.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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