Is Now The Time To Look At Buying ON Semiconductor Corporation (NASDAQ:ON)?
ON Semiconductor Corporation (NASDAQ:ON) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$86.21 and falling to the lows of US$70.19. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether ON Semiconductor's current trading price of US$75.78 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ON Semiconductor’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for ON Semiconductor
What Is ON Semiconductor Worth?
Great news for investors – ON Semiconductor is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $122.84, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that ON Semiconductor’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will ON Semiconductor generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by a double-digit 18% over the next couple of years, the outlook is positive for ON Semiconductor. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since ON is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ON for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ON. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into ON Semiconductor, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with ON Semiconductor, and understanding it should be part of your investment process.
If you are no longer interested in ON Semiconductor, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
