ON Semiconductor (ON) ended the most recent trading day at $66.54, representing a -0.89% change from the previous trade. The stock’s price change was less than the S&P 500’s daily decline of 0.05%. Elsewhere, the Dow Jones Industrial Average fell 0.02%, while the tech-heavy Nasdaq rose 0.18%.
Shares of the semiconductor parts maker have lost 3.73% over the past month, lagging the Computer Technology sector’s 3.5% rise and the S&P 500’s 2.76% rise.
Analysts and investors alike will be keeping an eye on ON Semiconductor’s performance in its upcoming earnings release. The company’s earnings report is scheduled to be released on October 28, 2024. In that report, analysts expect ON Semiconductor to post earnings of $0.97 per share. This is a 30.22% decrease compared to the previous year. Our latest consensus estimate is calling for quarterly revenue of $1.75 billion, down 19.77% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $4.01 per share and revenue of $7.13 billion, which would represent changes of -22.29% and -13.61%, respectively, from the prior year. .
It is also important to note any recent changes to analyst estimates for ON Semiconductor. These latest adjustments often reflect changes in short-term business patterns. Therefore, a positive estimate change means the analysts are optimistic about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near team stock movements. To benefit from this, we have created the Zacks Rank, a proprietary model that combines these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remains unchanged this month. ON Semiconductor Corp. currently has a Zacks Rank of #4 (Sell).
In terms of valuation, ON Semiconductor Inc. is currently trading at a forward P/E of 16.75. Its industry has an average Forward P/E of 35.58, so one might conclude that ON Semiconductor Inc. is trading at a discount relatively.
We can also see that ON’s current PEG ratio is 3.6. Compared to the widely accepted P/E ratio, the PEG ratio also explains a company’s expected earnings growth. As of yesterday’s close, the average PEG ratio for the Semiconductor/Analog/Mixed industry was 3.35.
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