In the latest close session, ON Semiconductor Corp. (ON) was down 2.25% at $53.33. The stock trailed the S&P 500, which registered a daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%.
The stock of semiconductor components maker has risen by 19.75% in the past month, leading the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.
The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.62, marking a 34.74% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.53 billion, down 11.02% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.36 per share and revenue of $5.99 billion, indicating changes of -40.7% and -15.36%, respectively, compared to the previous 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. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, ON Semiconductor Corp. is currently exchanging hands at a Forward P/E ratio of 23.16. This represents a discount compared to its industry average Forward P/E of 42.
Also, we should mention that ON has a PEG ratio of 2.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.19 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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