ON Semiconductor Corp. (ON) closed the most recent trading day at $56.93, moving +2.69% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.24%.
Prior to today's trading, shares of the semiconductor components maker had gained 3.34% lagged the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company is slated to reveal its earnings on August 4, 2025. It is anticipated that the company will report an EPS of $0.54, marking a 43.75% fall compared to the same quarter of the previous 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.
For the full year, the Zacks Consensus Estimates project earnings of $2.29 per share and a revenue of $5.92 billion, demonstrating changes of -42.46% and -16.47%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for ON Semiconductor Corp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #3 (Hold).
With respect to valuation, ON Semiconductor Corp. is currently being traded at a Forward P/E ratio of 24.2. This valuation marks a discount compared to its industry average Forward P/E of 39.64.
It is also worth noting that ON currently has a PEG ratio of 4.56. 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 Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
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.
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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ON Semiconductor Corporation (ON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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