ON Semiconductor Corp. (ON) Declines More Than Market: Some Information for Investors

ON Semiconductor Corp. (ON) closed the most recent trading day at $71.65, moving -5.9% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.

Shares of the semiconductor components maker have depreciated by 7.89% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.49%, and the S&P 500's loss of 0.82%.

The upcoming earnings release of ON Semiconductor Corp. will be of great interest to investors. The company is predicted to post an EPS of $0.9, indicating a 42.86% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.7 billion, indicating a 9.65% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.23 per share and a revenue of $6.57 billion, demonstrating changes of +37.45% and +9.52%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for ON Semiconductor Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ON Semiconductor Corp. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 23.6. Its industry sports an average Forward P/E of 42.77, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively.

We can also see that ON currently has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 0.73.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research