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ON Semiconductor Corp. (ON) Stock Moves -0.99%: What You Should Know

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The most recent trading session ended with ON Semiconductor Corp. (ON - Free Report) standing at $53.96, reflecting a -0.99% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 1.46%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq lost 3.07%.

Prior to today's trading, shares of the semiconductor components maker had lost 17.44% over the past month. This has lagged the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 1.08% in that time.

The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. The company is scheduled to release its earnings on February 10, 2025. The company's upcoming EPS is projected at $0.98, signifying a 21.6% drop compared to the same quarter of the previous 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 pay attention to any latest changes in analyst estimates for ON Semiconductor Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 5.86% decrease. Currently, ON Semiconductor Corp. is carrying a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, ON Semiconductor Corp. is currently exchanging hands at a Forward P/E ratio of 12.98. For comparison, its industry has an average Forward P/E of 40.22, which means ON Semiconductor Corp. is trading at a discount to the group.

It's also important to note that ON currently trades at a PEG ratio of 10.14. 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 of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.63.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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