ON Semiconductor Corp. (ON) closed at $55.66 in the latest trading session, marking a -4.61% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.4%. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq decreased by 0.73%.
Heading into today, shares of the semiconductor components maker had lost 12.23% over the past month, lagging the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.
Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.62, showcasing a 12.73% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.49 billion, indicating a 2.9% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.92 per share and revenue of $6.28 billion. These totals would mark changes of +24.26% and +4.81%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ON Semiconductor Corp. has a Forward P/E ratio of 20 right now. This represents a discount compared to its industry average Forward P/E of 32.97.
We can also see that ON currently has a PEG ratio of 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 1.15 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
