onsemi ON recently announced the launch of two new system solutions to support the building of widely used building automation network protocols — Power over Ethernet (PoE) and KNX.
onsemi has developed the industry’s first certified System-in-Package (SiP) NCN5140S in association with KNX Association. The NCN5140S aids in developing a complete KNX switch system by integrating all critical and certifiable elements like a digital KNX transceiver, a 32-bit ARM and system power DC/DC converters into a single package. This helps in building very slim and modern access and control panels at a considerably reduced material cost.
The company has introduced another complete solution for Ethernet-powered connected lighting — the NCL31010. This solution is different than other devices available in the market as it integrates an intelligent LED driver and PoE interface into a single package. This helps in designing intelligent LED luminaries while protecting against LED shorts and diagnostic functions to measure voltages and currents.
ON has forayed into building these products to capitalize on the uptrend in the market for vehicle electrification, ADAS, energy infrastructure and factory automation.
ON Semiconductor Corporation Price and Consensus
ON Semiconductor Corporation price-consensus-chart | ON Semiconductor Corporation Quote
onsemi’s Diverse Product Portfolio To Aid Top Line
onsemi has a very well-diversified business. The company generates a significant percentage of revenues from each of the computing, consumer, industrial, communications and automotive markets.
The company is reallocating capacity to strategic and high-margin products to drive a favorable mix shift and eliminate price-to-value discrepancies. Due to an expanding portfolio in high-margin products and long-term supply agreements for products in high demand, onsemi is expected to witness long-term revenue growth.
In the last reported quarter, onsemi’s revenues of $1.95 billion beat the Zacks Consensus Estimate by 1.99% and improved 31.3% on a year-over-year basis.
onsemi expects the demand to continue outpacing supply throughout 2022. This will drive earnings and revenues in the long run as the company is experiencing strong demand for products, specifically in megatrend industries like automotive and industrial.
However, the company’s supply chain constraints persist, especially for certain products that are manufactured by its foundry partners, due to unfavorable macroeconomics and geopolitical dynamics.
onsemi’s shares have fallen 6.1% in the year-to-date period due to the market volatility stemming from supply chain constraints as a result of the ongoing war and continued lockdowns in China. Meanwhile, the Zacks Semiconductor - Analog and Mixed industry and the Zacks Computer and Technology sector have declined 13.1% and 23.7%, respectively.
Zacks Rank & Other Stocks To Consider
onsemi currently sports a Zacks Rank #1 (Strong Buy). Here are some other similar-ranked stocks from the broader technology sector.
Analog Devices ADI currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ADI’s shares have fallen 6.2% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixedindustry’s decline of 24.2%.
Avnet AVT carries a Zacks Rank of 1.
Avnet’s shares have increased 17.4% in the year-to-date period against the Zacks Electronics - Parts Distributionindustry’s decline of 26.8%.
Aspen Technology AZPN carries a Zacks Rank #1.
AZPN’s’ shares have increased 35.8% in the year-to-date period against the Zacks Internet - Software industry’s decline of 44.7%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Avnet, Inc. (AVT) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research