Why the Market Dipped But ON Semiconductor Corp. (ON) Gained Today
ON Semiconductor Corp. (ON) closed at $86.68 in the latest trading session, marking a +1.31% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.64%. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq decreased by 0.59%.
Coming into today, shares of the semiconductor components maker had gained 42.86% in the past month. In that same time, the Computer and Technology sector gained 13.17%, while the S&P 500 gained 9.33%.
Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 4, 2026. The company's earnings per share (EPS) are projected to be $0.62, reflecting a 12.73% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.49 billion, indicating a 2.86% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.93 per share and revenue of $6.28 billion. These totals would mark changes of +24.68% and +4.8%, respectively, from last year.
Investors should also note any recent changes 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 business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.29% rise in the Zacks Consensus EPS estimate. ON Semiconductor Corp. currently has a Zacks Rank of #2 (Buy).
Looking at valuation, ON Semiconductor Corp. is presently trading at a Forward P/E ratio of 29.24. This indicates a discount in contrast to its industry's Forward P/E of 37.44.
Meanwhile, ON's PEG ratio is currently 0.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 0.91 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See Stocks Now >>ON Semiconductor Corporation (ON) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
