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

Zacks Equity Research
·2 min read

In the latest trading session, ON Semiconductor Corp. (ON) closed at $65.12, marking a +0.87% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the semiconductor components maker had lost 1.07% in the past month. In that same time, the Computer and Technology sector lost 5.82%, while the S&P 500 lost 0.13%.

Investors will be hoping for strength from ON Semiconductor Corp. as it approaches its next earnings release. The company is expected to report EPS of $0.94, up 168.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.79 billion, up 23.84% from the year-ago period.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. ON Semiconductor Corp. is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, ON Semiconductor Corp. is currently trading at a Forward P/E ratio of 19.68. This represents a discount compared to its industry's average Forward P/E of 21.57.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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