Back to top

Image: Bigstock

ON Semiconductor Corp. (ON) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

In the latest trading session, ON Semiconductor Corp. (ON - Free Report) closed at $55.18, marking a -1.24% move from the previous day. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.

Shares of the semiconductor components maker witnessed a loss of 15.9% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.73% and the S&P 500's loss of 3.45%.

Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 21.6% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.76 billion, reflecting a 12.87% fall from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for ON Semiconductor Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.77% lower. ON Semiconductor Corp. presently features a Zacks Rank of #5 (Strong Sell).

In terms of valuation, ON Semiconductor Corp. is currently trading at a Forward P/E ratio of 13.17. This indicates a discount in contrast to its industry's Forward P/E of 35.14.

Meanwhile, ON's PEG ratio is currently 10.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.56.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 207, placing it within the bottom 18% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ON Semiconductor Corporation (ON) - free report >>

Published in