ON Semiconductor Corp. (ON) closed the most recent trading day at $54.21, moving +1.95% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 1.43%.
The stock of semiconductor components maker has risen by 28.83% in the past month, leading the Computer and Technology sector's gain of 5.67% and the S&P 500's gain of 3.92%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.54, reflecting a 43.75% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.45 billion, showing a 16.44% drop compared to the year-ago quarter.
ON's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $5.9 billion. These results would represent year-over-year changes of -41.96% and -16.64%, respectively.
Investors should also note any recent changes to analyst estimates for ON Semiconductor Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% lower. Currently, ON Semiconductor Corp. is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 23.02. Its industry sports an average Forward P/E of 40.03, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.
Investors should also note that ON has a PEG ratio of 4.34 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.11.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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