ON Semiconductor Corp. (ON – Free Report) ended the recent trading session at $43.78, demonstrating a +1.34% swing from the preceding day’s closing price. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
The the stock of semiconductor components maker has fallen by 22.5% in the past month, lagging the Computer and Technology sector’s loss of 12.04% and the S&P 500’s loss of 7.33%.
The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.51 per share. This would mark a year-over-year decline of 52.78%. In the meantime, our current consensus estimate forecasts the revenue to be $1.41 billion, indicating a 24.54% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.49 per share and a revenue of $6.07 billion, indicating changes of -37.44% and -14.3%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.45% lower. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, ON Semiconductor Corp. is presently being traded at a Forward P/E ratio of 17.37. This valuation marks a discount compared to its industry’s average Forward P/E of 31.76.
It’s also important to note that ON currently trades at a PEG ratio of 13.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Semiconductor – Analog and Mixed industry currently had an average PEG ratio of 2.03 as of yesterday’s close.
The Semiconductor – Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 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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