ON Semiconductor Corp. (ON) closed the most recent trading day at $48.35, moving -1.95% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.34% for the day. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.
The semiconductor components maker's shares have seen an increase of 0.76% over the last month, not keeping up with the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54%.
Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.59 per share. This would mark a year-over-year decline of 40.4%. Alongside, our most recent consensus estimate is anticipating revenue of $1.52 billion, indicating a 14.01% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.32 per share and a revenue of $5.96 billion, demonstrating changes of -41.71% and -15.89%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ON Semiconductor Corp. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ON Semiconductor Corp. is currently trading at a Forward P/E ratio of 21.25. For comparison, its industry has an average Forward P/E of 43.15, which means ON Semiconductor Corp. is trading at a discount to the group.
It is also worth noting that ON currently has a PEG ratio of 2.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 35, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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