Scottsdale, Arizona-based ON Semiconductor Corporation (ON) provides intelligent sensing and power solutions. Valued at a market cap of $40.5 billion, the company has strategically shifted away from broad-market commodity components to focus on high-growth megatrends, specifically vehicle electrification, industrial automation, and the intense power requirements of AI-driven data centers.
This semiconductor company has notably outperformed the broader market over the past 52 weeks. Shares of ON have skyrocketed 144.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 29%. Moreover, on a YTD basis, the stock is up 89.4%, compared to SPX’s 5.6% rise.
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Zooming in further, ON has also outpaced the State Street Technology Select Sector SPDR ETF (XLK), which gained 49.4% over the past 52 weeks and 12.4% on a YTD basis.
www.barchart.com On Feb. 9, ON released its Q4 results, after which its shares rose 3.5% in the subsequent trading session. The company reported adjusted EPS of $0.64, exceeding Wall Street expectations of $0.62, while revenue came in at $1.5 billion, in line with forecasts. For Q1, ON anticipates adjusted EPS to be between $0.56 and $0.66, with revenue projected in the range of $1.4 billion to $1.5 billion.
For the current fiscal year, ending in December, analysts expect ON’s EPS to grow 23.4% year over year to $2.90. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 33 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 12 “Strong Buy,” two “Moderate Buy,” and 19 “Hold” ratings.
www.barchart.com The configuration is more bullish than a month ago, with 10 analysts suggesting a "Strong Buy” rating.
On May 1, Stifel Nicolaus analyst Tore Svanberg maintained a “Hold” rating on ON and set a price target of $90.
While the company is trading above its mean price target of $72.57, its Street-high price target of $115 suggests a 12.9% premium to its current levels,
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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