ON Semiconductor Corp. (ON) closed the most recent trading day at $72.04, moving +1.44% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.18% for the day. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq appreciated by 1.96%.
The stock of semiconductor components maker has risen by 18.6% in the past month, leading the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.62, marking a 12.73% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 2.9% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.92 per share and a revenue of $6.28 billion, demonstrating changes of +24.26% and +4.81%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. ON Semiconductor Corp. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ON Semiconductor Corp. is presently being traded at a Forward P/E ratio of 24.31. This signifies a discount in comparison to the average Forward P/E of 31.15 for its industry.
We can also see that ON currently has a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.83 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ON Semiconductor Corporation (ON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).