In the latest trading session, ON Semiconductor Corp. (ON - Free Report) closed at $18.11, marking a -1.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 1.04%.
Prior to today's trading, shares of the semiconductor components maker had gained 2.97% over the past month. This has outpaced the Computer and Technology sector's loss of 7.79% and the S&P 500's loss of 6.28% in that time.
ON will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2019. On that day, ON is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.50 billion, up 9.16% from the year-ago period.
ON's full-year Zacks Consensus Estimates are calling for earnings of $1.90 per share and revenue of $5.88 billion. These results would represent year-over-year changes of +30.14% and +6.05%, respectively.
Any recent changes to analyst estimates for ON should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.11% higher within the past month. ON is currently a Zacks Rank #3 (Hold).
In terms of valuation, ON is currently trading at a Forward P/E ratio of 9.7. Its industry sports an average Forward P/E of 17.58, so we one might conclude that ON is trading at a discount comparatively.
It is also worth noting that ON currently has a PEG ratio of 0.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ON's industry had an average PEG ratio of 1.22 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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.
To follow ON in the coming trading sessions, be sure to utilize Zacks.com.