News

The latest trading session saw ON Semiconductor Corp. (ON) ending at $76.37, denoting a -0.65% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.4%.

Shares of the semiconductor components maker have appreciated by 6.81% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.

Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 29, 2024. It is anticipated that the company will report an EPS of $0.93, marking a 30.08% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.73 billion, indicating a 17.32% decrease compared to the same quarter of the previous year.

ON's full-year Zacks Consensus Estimates are calling for earnings of $3.83 per share and revenue of $7.2 billion. These results would represent year-over-year changes of -25.78% and -12.78%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for ON Semiconductor Corp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, ON Semiconductor Corp. boasts a Zacks Rank of #4 (Sell).

In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 20.08. This expresses a discount compared to the average Forward P/E of 38.23 of its industry.

We can additionally observe that ON currently boasts a PEG ratio of 3.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 3.41 at the close of the market yesterday.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ON Semiconductor Corporation (ON) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.