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ON Semiconductor Corp. (ON) Stock Declines While Market Improves: Some Information for Investors

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ON Semiconductor Corp. (ON - Free Report) closed at $48.13 in the latest trading session, marking a -1.01% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.

The semiconductor components maker's stock has dropped by 2.78% in the past month, falling short of the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 2.09%.

Market participants will be closely following the financial results of ON Semiconductor Corp. in its upcoming release. The company's upcoming EPS is projected at $0.59, signifying a 40.40% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.52 billion, showing a 14.01% drop compared to the year-ago quarter.

ON's full-year Zacks Consensus Estimates are calling for earnings of $2.32 per share and revenue of $5.96 billion. These results would represent year-over-year changes of -41.71% and -15.89%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has shifted 0.12% upward. ON Semiconductor Corp. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 20.95. This signifies a discount in comparison to the average Forward P/E of 37.55 for its industry.

Also, we should mention that ON has a PEG ratio of 2.42. 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. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.17.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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