In the latest trading session, ON Semiconductor Corp. (ON) closed at $60.89, marking a -1.62% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.44%.
Shares of the semiconductor components maker witnessed a gain of 12.32% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.69%, and the S&P 500's gain of 0.86%.
The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. The company is forecasted to report an EPS of $0.62, showcasing a 34.74% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.53 billion, down 11.02% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $5.99 billion. These totals would mark changes of -40.7% and 0%, respectively, from last year.
Any recent changes to analyst estimates for ON Semiconductor Corp. should also be noted by investors. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. ON Semiconductor Corp. is currently sporting 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 21.34. For comparison, its industry has an average Forward P/E of 40.79, which means ON Semiconductor Corp. is trading at a discount to the group.
Meanwhile, ON's PEG ratio is currently 2.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.29 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.
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.
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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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