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In the latest trading session, ON Semiconductor Corp. (ON) closed at $35.08, marking a +0.56% move from the previous day. This change lagged the S&P 500's 1.81% gain on the day. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.
Coming into today, shares of the semiconductor components maker had lost 17.25% in the past month. In that same time, the Computer and Technology sector lost 7.27%, while the S&P 500 lost 6.14%.
The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company is forecasted to report an EPS of $0.51, showcasing a 52.78% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.41 billion, indicating a 24.56% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.49 per share and revenue of $5.92 billion, which would represent changes of -37.44% and -16.39%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that ON Semiconductor Corp. has a Forward P/E ratio of 14.03 right now. This indicates a discount in contrast to its industry's Forward P/E of 25.08.
It is also worth noting that ON currently has a PEG ratio of 10.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 1.61 as of yesterday's close.