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Why ON Semiconductor Corp. (ON) Outpaced the Stock Market Today

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ON Semiconductor Corp. (ON - Free Report) closed the most recent trading day at $85.93, moving +1.23% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.66% for the day. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.05%.

Coming into today, shares of the semiconductor components maker had gained 14.13% in the past month. In that same time, the Computer and Technology sector gained 6.36%, while the S&P 500 gained 0.55%.

Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. On that day, ON Semiconductor Corp. is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 38.1%. At the same time, our most recent consensus estimate is projecting a revenue of $1.7 billion, reflecting a 9.66% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.2 per share and a revenue of $6.56 billion, signifying shifts of +36.17% and +9.47%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.84% fall in the Zacks Consensus EPS estimate. Currently, ON Semiconductor Corp. is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, ON Semiconductor Corp. is currently trading at a Forward P/E ratio of 26.54. Its industry sports an average Forward P/E of 36.84, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.

It's also important to note that ON currently trades at a PEG ratio of 0.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 19% of all 250+ industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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