ON Semiconductor Corp. (ON) closed the most recent trading day at $67.90, moving +1.91% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.1% for the day. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 1.35%.
The the stock of semiconductor components maker has fallen by 7.96% in the past month, lagging the Computer and Technology sector's gain of 5.09% and the S&P 500's gain of 0.22%.
Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.99, marking a 20.8% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.76 billion, reflecting a 12.73% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4 per share and a revenue of $7.12 billion, indicating changes of -22.48% and -13.7%, respectively, from the former year.
Any recent changes to analyst estimates for ON Semiconductor Corp. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% downward. ON Semiconductor Corp. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ON Semiconductor Corp. is presently being traded at a Forward P/E ratio of 16.67. This expresses a discount compared to the average Forward P/E of 36.38 of its industry.
Also, we should mention that ON has a PEG ratio of 7.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ON's industry had an average PEG ratio of 2.56 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 43% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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