ON Semiconductor Corp. ON shares rallied 6% in the last trading session to close at $84.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.7% gain over the past four weeks.
ON Semiconductor benefits from strong AI data center demand across the power tree, and automotive content gains continue across China and newer vehicle platforms. Treo, EliteSiC and GaN widen exposure to higher-value power and connectivity opportunities, while Fab Right actions and rising utilization support margin expansion.
This semiconductor components maker is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +38.1%. Revenues are expected to be $1.7 billion, up 9.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For ON Semiconductor Corp., the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ON Semiconductor Corp. is part of the Zacks Semiconductor - Analog and Mixed industry. Semtech SMTC, another stock in the same industry, closed the last trading session 4.4% higher at $194.88. SMTC has returned 37.8% in the past month.
Semtech's consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.06. Compared to the company's year-ago EPS, this represents a change of +120.8%. Semtech currently boasts a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).