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ON Semiconductor Corp. (ON) Gains As Market Dips: What You Should Know

In the latest trading session, ON Semiconductor Corp. (ON) closed at $69.51, marking a +0.85% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the semiconductor components maker had gained 4.35% over the past month. This has outpaced the Computer and Technology sector's loss of 4.64% and the S&P 500's loss of 3.29% in that time.

ON Semiconductor Corp. will be looking to display strength as it nears its next earnings release. On that day, ON Semiconductor Corp. is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 50.57%. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, up 21.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.13 per share and revenue of $8.26 billion, which would represent changes of +73.9% and +22.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. ON Semiconductor Corp. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 13.44. This represents a discount compared to its industry's average Forward P/E of 14.73.

Meanwhile, ON's PEG ratio is currently 0.52. 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 0.8 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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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