ON Semiconductor Corp. Experiences a Noteworthy Drop in Stock Price

In the most recent trading session, ON Semiconductor Corp. (ON) closed at $66.34, indicating a decline of -1.98% from its previous close. This performance was notably worse than the broader market, with the S&P 500 showing a modest loss of 0.3%. Other major indices also saw declines, with the Dow down by 0.35% and the Nasdaq experiencing a decrease of 0.25%.

Recent Stock Performance

Over the past month, ON Semiconductor's stock has fallen by 3.26%. This decline contrasts sharply with the broader Computer and Technology sector, which managed to achieve a gain of 1.7%. Even the S&P 500 index itself noted a gain of 1.09% in this timeframe.

Upcoming Earnings Report

The investment community is eagerly anticipating the upcoming earnings report from ON Semiconductor Corp. Analysts forecast an earnings per share (EPS) of $0.99. If realized, this would represent a significant drop of 20.8% compared to the same quarter last year. Additionally, the revenue is expected to be around $1.76 billion, which is a decrease of 12.73% from the previous year's quarter.

Annual Earnings Expectations

Looking at the annual metrics, the Zacks Consensus Estimates predict earnings of $4 per share and anticipated revenue of $7.12 billion for the year, indicating declines of -22.48% and -13.7%, respectively, compared to last year.

Analyst Forecast Revisions

It is crucial for investors to stay updated on any changes to analyst forecasts for ON Semiconductor Corp. These revisions are vital indicators of the latest business trends. Notably, positive adjustments in estimates reflect analyst optimism concerning the company's profitability and performance.

Impact of Estimate Revisions

Research suggests that revisions to earnings estimates are closely linked to short-term stock price movements. Given this, the Zacks Rank system has been developed to assist investors in interpreting these changes systematically. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), showing a strong historical performance record where top-rated stocks have delivered an average annual return of +25% since 1988.

Current Zacks Rank and Valuation

Currently, ON Semiconductor Corp. holds a Zacks Rank of #3 (Hold). In terms of valuation, ON is trading at a Forward P/E ratio of 16.91. This is significantly lower than the industry average Forward P/E ratio of 38.63, suggesting that ON is trading at a discount relative to its peers.

PEG Ratio Insight

The current PEG ratio for ON Semiconductor is calculated at 7.26. The PEG ratio is a useful metric that accounts for earnings growth rates and assists in evaluating stock valuations. By comparison, the average PEG ratio for the Semiconductor - Analog and Mixed industry was noted at 3.21 at the market close yesterday.

Industry Performance

ON Semiconductor is part of the Semiconductor - Analog and Mixed industry within the Computer and Technology sector, which currently ranks 139th according to Zacks Industry Rank. This places it within the bottom 45% of more than 250 industries surveyed. The Zacks Industry Rank helps gauge the health of specific industry groups by calculating the average Zacks Rank of companies within those sectors, revealing that top-ranked industries tend to outperform their lower-ranked counterparts significantly.

Monitor Key Metrics

Investors are encouraged to keep an eye on these essential metrics that could influence stock performance in the coming trading sessions.

Stocks, Market, Earnings