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

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The most recent trading session ended with ON Semiconductor Corp. (ON - Free Report) standing at $52.32, reflecting a -1.79% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.51%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.

Shares of the semiconductor components maker witnessed a loss of 13.68% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.79% and the S&P 500's gain of 2.87%.

Analysts and investors alike will be keeping a close eye on the performance of ON Semiconductor Corp. in its upcoming earnings disclosure. The company's earnings report is set to go public on February 10, 2025. The company is forecasted to report an EPS of $0.98, showcasing a 21.6% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.76 billion, down 12.87% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ON Semiconductor Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 returning an average of +25% annually since 1988. Over the past month, there's been a 6.79% fall in the Zacks Consensus EPS estimate. ON Semiconductor Corp. currently has a Zacks Rank of #5 (Strong Sell).

With respect to valuation, ON Semiconductor Corp. is currently being traded at a Forward P/E ratio of 12.82. This denotes a discount relative to the industry's average Forward P/E of 37.75.

One should further note that ON currently holds a PEG ratio of 10.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.59.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 233, positioning it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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