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Here's Why ON Semiconductor Corp. (ON) Fell More Than Broader Market
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ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $49.77, moving -2.3% from the previous trading session. This change lagged the S&P 500's 0.5% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
Heading into today, shares of the semiconductor components maker had lost 0.6% over the past month, lagging the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.59 per share. This would mark a year-over-year decline of 40.4%. Meanwhile, our latest consensus estimate is calling for revenue of $1.52 billion, down 14.01% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and a revenue of $5.96 billion, representing changes of -41.71% and -15.89%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ON Semiconductor Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. ON Semiconductor Corp. is currently a Zacks Rank #3 (Hold).
In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 21.95. This signifies a discount in comparison to the average Forward P/E of 36.54 for its industry.
It is also worth noting that ON currently has a PEG ratio of 2.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% 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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Here's Why ON Semiconductor Corp. (ON) Fell More Than Broader Market
ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $49.77, moving -2.3% from the previous trading session. This change lagged the S&P 500's 0.5% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
Heading into today, shares of the semiconductor components maker had lost 0.6% over the past month, lagging the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.59 per share. This would mark a year-over-year decline of 40.4%. Meanwhile, our latest consensus estimate is calling for revenue of $1.52 billion, down 14.01% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and a revenue of $5.96 billion, representing changes of -41.71% and -15.89%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ON Semiconductor Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. ON Semiconductor Corp. is currently a Zacks Rank #3 (Hold).
In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 21.95. This signifies a discount in comparison to the average Forward P/E of 36.54 for its industry.
It is also worth noting that ON currently has a PEG ratio of 2.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% 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.