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ON Semiconductor Corp. (ON) ended the recent trading session at $43.78, demonstrating a +1.34% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
The the stock of semiconductor components maker has fallen by 22.5% in the past month, lagging the Computer and Technology sector's loss of 12.04% and the S&P 500's loss of 7.33%.
The investment community will be closely monitoring the performance of ON Semiconductor Corp. in its forthcoming earnings report. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.51 per share. This would mark a year-over-year decline of 52.78%. In the meantime, our current consensus estimate forecasts the revenue to be $1.41 billion, indicating a 24.54% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.49 per share and a revenue of $6.07 billion, indicating changes of -37.44% and -14.3%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for ON Semiconductor Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.45% lower. Right now, ON Semiconductor Corp. possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, ON Semiconductor Corp. is presently being traded at a Forward P/E ratio of 17.37. This valuation marks a discount compared to its industry's average Forward P/E of 31.76.
It's also important to note that ON currently trades at a PEG ratio of 13.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.03 as of yesterday's close.