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ON Semiconductor Corp. (ON) Gains But Lags Market: What You Should Know

Zacks Equity Research
·2 min read

In the latest trading session, ON Semiconductor Corp. (ON) closed at $53.76, marking a +0.17% move from the previous day. This move lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the semiconductor components maker had lost 20.62% in the past month. In that same time, the Computer and Technology sector lost 16.14%, while the S&P 500 lost 9.65%.

ON Semiconductor Corp. will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2022. On that day, ON Semiconductor Corp. is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 168.57%. Meanwhile, our latest consensus estimate is calling for revenue of $1.79 billion, up 23.84% from the prior-year quarter.

Any recent changes to analyst estimates for ON Semiconductor Corp. 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.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. ON Semiconductor Corp. is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note ON Semiconductor Corp.'s current valuation metrics, including its Forward P/E ratio of 16.36. This valuation marks a discount compared to its industry's average Forward P/E of 18.63.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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