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ON Semiconductor Corp. (ON) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, ON Semiconductor Corp. (ON) closed at $70.59, marking a +1.96% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq appreciated by 1.68%.

Shares of the semiconductor components maker witnessed a loss of 13.34% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.95% and the S&P 500's gain of 0.8%.

Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. On that day, ON Semiconductor Corp. is projected to report earnings of $1.05 per share, which would represent a year-over-year decline of 11.76%. Simultaneously, our latest consensus estimate expects the revenue to be $1.85 billion, showing a 5.52% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.34 per share and a revenue of $7.56 billion, signifying shifts of -15.89% and -8.37%, respectively, from the last year.

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Investors might also notice recent changes to analyst estimates for ON Semiconductor Corp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ON Semiconductor Corp. is currently a Zacks Rank #4 (Sell).

Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 15.96. This denotes a discount relative to the industry's average Forward P/E of 33.49.

We can additionally observe that ON currently boasts a PEG ratio of 6.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 3.01 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 238, placing it within the bottom 6% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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ON Semiconductor Corporation (ON) : Free Stock Analysis Report

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