In the latest close session, ON Semiconductor Corp. (ON) was down 3.71% at $59.89. The stock's change was less than the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.94%.
Coming into today, shares of the semiconductor components maker had gained 14.87% in the past month. In that same time, the Computer and Technology sector gained 1.51%, while the S&P 500 gained 0.89%.
The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. The company's earnings report is expected on February 9, 2026. The company is expected to report EPS of $0.62, down 34.74% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.53 billion, indicating a 11.02% decline compared to the corresponding quarter of the prior year.
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 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has remained steady. ON Semiconductor Corp. is currently a Zacks Rank #3 (Hold).
Looking at valuation, ON Semiconductor Corp. is presently trading at a Forward P/E ratio of 21.44. This signifies a discount in comparison to the average Forward P/E of 48.35 for its industry.
We can also see that ON currently has a PEG ratio of 2.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.57 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% 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.
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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