ON Semiconductor Corp. (ON) ended the recent trading session at $71.08, demonstrating a -4.44% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.58%. Elsewhere, the Dow lost 1.18%, while the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the semiconductor components maker had lost 6.77% in the past month. In that same time, the Computer and Technology sector gained 0.12%, while the S&P 500 lost 0.36%.
The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.9, reflecting a 42.86% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 9.65% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.23 per share and a revenue of $6.57 billion, signifying shifts of +37.45% and +9.52%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ON Semiconductor Corp. Such recent modifications usually signify the changing landscape of near-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
With respect to valuation, ON Semiconductor Corp. is currently being traded at a Forward P/E ratio of 23.06. This valuation marks a discount compared to its industry average Forward P/E of 35.99.
It is also worth noting that ON currently has a PEG ratio of 0.61. 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 was holding an average PEG ratio of 0.7 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ON Semiconductor Corporation (ON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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