ON Semiconductor Corp. ON shares soared 10.4% in the last trading session to close at $79.93. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.8% gain over the past four weeks.
ON Semiconductor benefits from strong Automotive demand, AI Data Center Expansion, Silicon Carbide & Power Portfolio Strength, Gallium Nitride Innovation,Treo Platform Scaling and strategic acquisitions enhancing capabilities.
This semiconductor components maker is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +12.7%. Revenues are expected to be $1.49 billion, up 2.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For ON Semiconductor Corp., the consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ON going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ON Semiconductor Corp. is a member of the Zacks Semiconductor - Analog and Mixed industry. One other stock in the same industry, MaxLinear MXL, finished the last trading session 6.1% higher at $23.35. MXL has returned 33.7% over the past month.
For MaxLinear, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of +460% from what the company reported a year ago. MaxLinear currently has a Zacks Rank of #3 (Hold).
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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This article originally published on Zacks Investment Research (zacks.com).