In the latest trading session, ON Semiconductor Corp. (ON) closed at $62.20, marking a -4.2% move from the previous day. This change lagged the S&P 500's 0.13% loss on the day. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq decreased by 0.72%.
Shares of the semiconductor components maker have appreciated by 19.91% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.88%, and the S&P 500's gain of 0.78%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company is slated to reveal its earnings on February 9, 2026. The company's upcoming EPS is projected at $0.62, signifying a 34.74% drop 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.
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 latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 no change in the Zacks Consensus EPS estimate. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 22.39. This valuation marks a discount compared to its industry average Forward P/E of 48.1.
Investors should also note that ON has a PEG ratio of 2.82 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.58.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.
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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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