In the latest trading session, ON Semiconductor Corp. (ON – Free Report) closed at $64.51, marking a +0.94% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company is predicted to post an EPS of $0.99, indicating a 20.8% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.76 billion, showing a 12.73% drop compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. ON Semiconductor Corp. currently has a Zacks Rank of #4 (Sell).
Looking at valuation, ON Semiconductor Corp. is presently trading at a Forward P/E ratio of 14.6. This valuation marks a discount compared to its industry’s average Forward P/E of 36.43.
Meanwhile, ON’s PEG ratio is currently 6.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Semiconductor – Analog and Mixed industry held an average PEG ratio of 2.42.
The Semiconductor – Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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