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Why ON Semiconductor Corp. (ON) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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ON Semiconductor Corp. (ON)

Onsemi, is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company was spun off from Motorola in Aug 1999 and went public through an IPO in May 2000.

ON is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 9.6X for the current fiscal year compared to the Semiconductor - Analog and Mixed industry's P/E of 15.3X. Additionally, ON has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 10.6X. Value investors should also note ON's Price/Sales ratio of 2.8X.

A company's earnings performance is important for value investors as well. For fiscal 2022, five analysts revised their earnings estimate higher in the last 60 days for ON, while the Zacks Consensus Estimate has increased $0.31 to $4.90 per share. ON also holds an average earnings surprise of 19.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ON to their portfolios.


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