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

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ON Semiconductor Corp. (ON) closed at $50.47 in the latest trading session, marking a -1.06% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.23%.

Heading into today, shares of the semiconductor components maker had lost 9.3% over the past month, lagging the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 3.49% in that time.

ON Semiconductor Corp. will be looking to display strength as it nears its next earnings release. In that report, analysts expect ON Semiconductor Corp. to post earnings of $1.26 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 20.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $7.99 billion, which would represent changes of +66.44% and +18.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ON Semiconductor Corp. is currently a Zacks Rank #2 (Buy).

Digging into valuation, ON Semiconductor Corp. currently has a Forward P/E ratio of 10.4. For comparison, its industry has an average Forward P/E of 16.02, which means ON Semiconductor Corp. is trading at a discount to the group.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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