ON Semiconductor Corp. (ON) Outpaces Stock Market Gains: What You Should Know

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.The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 138, positioning it in the bottom 46% 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.You can find more information on all of these metrics, and much more, on Zacks.com.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ON Semiconductor Corporation (ON): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks