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ON Semiconductor Corp. (ON) Falls More Steeply Than Broader Market: What Investors Need to Know

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ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $48.94, moving -1.31% from the previous trading session. This change lagged the S&P 500's daily loss of 0.69%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq lost 0.82%.

Shares of the semiconductor components maker witnessed a gain of 3.38% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.71%, and the S&P 500's gain of 3.79%.

Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.59, marking a 40.4% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.52 billion, reflecting a 14.01% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.32 per share and a revenue of $5.96 billion, signifying shifts of -41.71% and -15.89%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has shifted 1.32% upward. ON Semiconductor Corp. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 21.37. This expresses a discount compared to the average Forward P/E of 37 of its industry.

Meanwhile, ON's PEG ratio is currently 2.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.23.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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