ON Semiconductor Corp. (ON) closed the most recent trading day at $68.15, moving -0.61% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.03%.
Coming into today, shares of the semiconductor components maker had gained 0.41% in the past month. In that same time, the Computer and Technology sector lost 12.18%, while the S&P 500 lost 7.59%.
Investors will be hoping for strength from ON Semiconductor Corp. as it approaches its next earnings release. The company is expected to report EPS of $1.32, up 51.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.12 billion, up 21.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.15 per share and revenue of $8.26 billion, which would represent changes of +74.58% and +22.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 13.32. This represents a discount compared to its industry's average Forward P/E of 14.64.
We can also see that ON currently has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 0.79 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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