ON Semiconductor Corp. (ON) Rises Yet Lags Behind Market: Some Facts Worth Knowing

ON Semiconductor Corp. (ON) ended the recent trading session at $59.89, demonstrating a +1.06% change from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow saw an upswing of 1.38%, while the tech-heavy Nasdaq appreciated by 1.38%.

Prior to today's trading, shares of the semiconductor components maker had lost 14.25% lagged the Computer and Technology sector's loss of 5.27% and the S&P 500's loss of 5.69%.

The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company is expected to report EPS of $0.62, up 12.73% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.49 billion, indicating a 2.9% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.92 per share and a revenue of $6.28 billion, representing changes of +24.26% and +4.81%, respectively, from the prior year.

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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.32% increase. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #3 (Hold).

In terms of valuation, ON Semiconductor Corp. is presently being traded at a Forward P/E ratio of 20.31. This represents a discount compared to its industry average Forward P/E of 34.55.

Investors should also note that ON has a PEG ratio of 0.63 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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This article originally published on Zacks Investment Research (zacks.com).

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