ON Semiconductor Corp. (ON) Beats Stock Market Upswing: What Investors Need to Know
ON Semiconductor Corp. (ON) closed the most recent trading day at $84.74, moving +1.17% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the semiconductor components maker had gained 18.51% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. On that day, ON Semiconductor Corp. is projected to report earnings of $1.21 per share, which would represent a year-over-year decline of 8.33%. Alongside, our most recent consensus estimate is anticipating revenue of $2 billion, indicating a 4.82% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.13 per share and a revenue of $8.24 billion, indicating changes of -3.75% and -0.99%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ON Semiconductor Corp. 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. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ON Semiconductor Corp. currently has a Zacks Rank of #4 (Sell).
In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 16.33. This expresses a discount compared to the average Forward P/E of 27.91 of its industry.
Investors should also note that ON has a PEG ratio of 4.05 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 3.89 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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ON Semiconductor Corporation (ON) : Free Stock Analysis Report
