Here's Why ON Semiconductor Corp. (ON) Fell More Than Broader Market

In the latest close session, ON Semiconductor Corp. (ON) was down 23.66% at $90.65. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%. Prior to today's trading, shares of the semiconductor components maker had lost 4.06% lagged the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. The company's upcoming EPS is projected at $0.71, signifying a 33.96% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.59 billion, indicating a 7.92% upward movement from the same quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.09 per share and revenue of $6.48 billion. These totals would mark changes of +31.49% and +8.02%, respectively, from last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ON Semiconductor Corp. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ON Semiconductor Corp. is currently a Zacks Rank #2 (Buy). In the context of valuation, ON Semiconductor Corp. is at present trading with a Forward P/E ratio of 38.46. Its industry sports an average Forward P/E of 59.79, so one might conclude that ON Semiconductor Corp. is trading at a discount comparatively. Also, we should mention that ON has a PEG ratio of 1.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 1.12. The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 4, placing it within the top 2% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks