ON Semiconductor Corp. (ON) ended the recent trading session at $61.98, demonstrating a -1.73% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.28%.
The semiconductor components maker's stock has climbed by 14.51% in the past month, exceeding the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 0.6%.
Market participants will be closely following the financial results of ON Semiconductor Corp. in its upcoming release. The company is predicted to post an EPS of $0.62, indicating a 34.74% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.53 billion, down 11.02% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.36 per share and a revenue of $5.99 billion, representing changes of -40.7% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate remained stagnant. At present, ON Semiconductor Corp. boasts 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 21.75. This signifies a discount in comparison to the average Forward P/E of 47.25 for its industry.
We can additionally observe that ON currently boasts a PEG ratio of 2.74. 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 2.48 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 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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