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ON Semiconductor Corp. (ON) closed the most recent trading day at $63.05, moving -0.65% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq decreased by 0.9%.
Heading into today, shares of the semiconductor components maker had lost 14.19% over the past month, lagging the Computer and Technology sector's gain of 2.86% and the S&P 500's loss of 1.98% in that time.
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 $0.99 per share. This would mark a year-over-year decline of 20.8%. Meanwhile, our latest consensus estimate is calling for revenue of $1.76 billion, down 12.73% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4 per share and a revenue of $7.12 billion, demonstrating changes of -22.48% and -13.7%, respectively, from the preceding year.
Any recent changes to analyst estimates for ON Semiconductor Corp. should also be noted by investors. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Currently, ON Semiconductor Corp. is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, ON Semiconductor Corp. is currently trading at a Forward P/E ratio of 15.88. This valuation marks a discount compared to its industry's average Forward P/E of 35.9.
Investors should also note that ON has a PEG ratio of 6.82 right now. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.5.