ON Semiconductor Corp. (ON) closed at $59.57 in the latest trading session, marking a +1.09% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.
Shares of the semiconductor components maker witnessed a gain of 11.31% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.22%, and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.54, showcasing a 43.75% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.45 billion, indicating a 16.44% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.28 per share and a revenue of $5.9 billion, indicating changes of -42.71% and -16.64%, 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 25.81. Its industry sports an average Forward P/E of 39.64, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.
We can additionally observe that ON currently boasts a PEG ratio of 4.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.19.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ON Semiconductor Corporation (ON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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