In the latest trading session, ON Semiconductor Corp. (ON) closed at $56.60, marking a +1.16% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.83% for the day. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
Prior to today's trading, shares of the semiconductor components maker had gained 11.28% outpaced the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.
Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.53 per share. This would mark a year-over-year decline of 44.79%. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, down 16.44% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.28 per share and a revenue of $5.9 billion, representing changes of -42.71% and -16.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 moved 0.06% higher. ON Semiconductor Corp. is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ON Semiconductor Corp.'s current valuation metrics, including its Forward P/E ratio of 24.5. Its industry sports an average Forward P/E of 40.37, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.
It's also important to note that ON currently trades at a PEG ratio of 4.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 30% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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