ON Semiconductor Corp. (ON) Surpasses Market Growth: Key Insights

ON Semiconductor Corp. (ON) recently finished the trading day at a price of $67.90, reflecting a rise of +1.91% compared to the previous day’s closing figure. This performance outstripped the S&P 500, which saw a gain of 1.1%. Additionally, the Dow Jones Industrial Average climbed by 0.91%, while the technology-focused Nasdaq reported an increase of 1.35% during the same session.

However, it's important to note that ON's stock has experienced a decrease of 7.96% over the past month. This decline is notably more significant than the gains in the broader Computer and Technology sector, which rose by 5.09%, and the S&P 500's modest increase of 0.22%.

Investors and analysts are keenly awaiting ON Semiconductor’s upcoming earnings report. Forecasts suggest that the company might reveal earnings per share (EPS) of $0.99, which would mark a drop of 20.8% from the same quarter last year. Furthermore, the current consensus estimates indicate expected revenue of $1.76 billion, representing a decrease of 12.73% from the corresponding quarter in the previous year.

Looking at the broader picture for the fiscal year, Zacks Consensus Estimates predict earnings of $4.00 per share and revenues of $7.12 billion, reflecting a year-over-year decline of 22.48% in earnings and 13.7% in revenue.

Recent adjustments to analyst estimates for ON Semiconductor are also worth noting. These modifications often mirror changes in short-term business conditions. For investors, positive revisions to estimates are typically seen as encouraging signs regarding the company’s outlook.

Research shows a strong correlation between estimate revisions and future stock price performance. To help investors make informed decisions, the Zacks Rank has been developed to capture these estimate changes, providing a structured rating system.

This system employs a scale from #1 (Strong Buy) to #5 (Strong Sell) and has historically outperformed the market. Stocks ranked #1 have yielded an average annual return of +25% since 1988. However, over the last month, the consensus EPS estimate for ON Semiconductor has decreased by 0.17%, and the stock currently holds a Zacks Rank of #3 (Hold).

In terms of valuation metrics, ON Semiconductor is trading at a Forward P/E ratio of 16.67, which is considerably lower than the industry average of 36.38. Additionally, ON has a PEG ratio of 7.16, which takes into account expected earnings growth, while the industry average PEG stands at 2.56.

ON Semiconductor operates within the Semiconductor - Analog and Mixed industry, which is part of the broader Computer and Technology sector. This industry currently holds a Zacks Industry Rank of 144, placing it within the weaker 43% of all evaluated industries.

The Zacks Industry Rank assesses the performance of various industry groups based on the average Zacks Rank of their constituent stocks. Historical data indicates that the top half of ranked industries tend to outperform the lower half by a factor of two to one.

For additional information about ON Semiconductor Corp. and its performance metrics, resources can be accessed through various financial platforms.

ON, Semiconductor, Earnings