ON Semiconductor Corp. (ON) closed the most recent trading day at $60.58, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1%.
The stock of semiconductor components maker has risen by 8.89% in the past month, leading the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.62, indicating a 34.74% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.53 billion, indicating a 11.02% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.36 per share and a revenue of $5.99 billion, demonstrating changes of -40.7% and 0%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for ON Semiconductor Corp. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. As of now, ON Semiconductor Corp. holds a Zacks Rank of #3 (Hold).
Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 20.48. This expresses a discount compared to the average Forward P/E of 44.81 of its industry.
One should further note that ON currently holds a PEG ratio of 2.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.36 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
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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