Is ON Semiconductor Corporation (ON) the Best Falling Stock to Invest in Right Now?

As the semiconductor industry faces headwinds, one stock that has caught my eye is ON Semiconductor Corporation (ON). Despite recent declines, ON Semiconductor's long-term prospects and undervalued status make it an attractive investment opportunity. Let's dive into the reasons why ON Semiconductor might be the best falling stock to invest in right now.



1. Undervalued compared to historical averages and industry peers
ON Semiconductor's current P/E ratio of 13.23 is lower than its 5-year average of 14.3 and 10-year average of 12.5. Its EV/EBITDA ratio of 12.31 is also lower than its 5-year average of 11.5 and 10-year average of 10.5. Compared to the industry averages of 17.86 for P/E and 19.71 for EV/EBITDA, ON Semiconductor appears relatively undervalued.

2. Strong fundamentals and growth prospects
ON Semiconductor's focus on intelligent power and sensing solutions positions it well for growth in electric vehicles, data centers, and AI systems. The company's revenue is expected to grow by 4.09% in 2025, and earnings are projected to increase by 7.43%. These growth prospects, coupled with the company's strong balance sheet and cash flow, make ON Semiconductor an attractive investment.

3. Catalysts for future growth
ON Semiconductor's recent acquisition of Qorvo's Silicon Carbide JFET technology portfolio and its collaboration with DENSO for a strengthened relationship are examples of the company's strategic initiatives to drive future growth. These catalysts, along with the company's ongoing investment in advanced technologies like silicon carbide and gallium nitride, set the stage for continued success.

4. Analyst sentiment and price targets
Despite the recent decline, analysts maintain a bullish outlook on ON Semiconductor. The average rating for ON stock is "Buy," and the 12-month stock price forecast is $82.52, indicating a potential upside of 51.41% from the latest price. This positive sentiment reflects analysts' confidence in the company's long-term prospects.



In conclusion, ON Semiconductor Corporation's undervalued status, strong fundamentals, growth prospects, and catalysts for future growth make it an attractive investment opportunity. While the semiconductor industry faces headwinds, ON Semiconductor's long-term prospects and strategic initiatives position it well for continued success. As an investor, it's essential to stay informed about the company's developments and maintain a long-term perspective to capitalize on its potential.