ON Semiconductor Corp. (ON) closed the most recent trading day at $57.69, moving -2.62% from the previous trading session. This change lagged the S&P 500's daily loss of 1.52%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 1.78%.
The semiconductor components maker's shares have seen a decrease of 16.77% over the last month, not keeping up with the Computer and Technology sector's loss of 1.66% and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company is expected to report EPS of $0.62, up 12.73% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.49 billion, showing a 2.9% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.92 per share and a revenue of $6.28 billion, representing changes of +24.26% and +4.81%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. As of now, ON Semiconductor Corp. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, ON Semiconductor Corp. is currently exchanging hands at a Forward P/E ratio of 20.31. This valuation marks a discount compared to its industry average Forward P/E of 40.04.
Also, we should mention that ON has a PEG ratio of 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 1.22 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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ON Semiconductor Corporation (ON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).