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In the latest trading session, ON Semiconductor Corp. (ON) closed at $66.63, marking a +1.73% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.
The semiconductor components maker's shares have seen a decrease of 5.92% over the last month, not keeping up with the Computer and Technology sector's gain of 3.28% and the S&P 500's gain of 0.34%.
Investors will be eagerly watching for the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.99, signifying a 20.8% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.76 billion, indicating a 12.73% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4 per share and revenue of $7.12 billion, indicating changes of -22.48% and -13.7%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. ON Semiconductor Corp. currently has a Zacks Rank of #3 (Hold).
Investors should also note ON Semiconductor Corp.'s current valuation metrics, including its Forward P/E ratio of 16.39. This indicates a discount in contrast to its industry's Forward P/E of 34.89.
We can also see that ON currently has a PEG ratio of 7.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.52 as trading concluded yesterday.