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

ON Semiconductor Corp. (ON) closed at $81.35 in the latest trading session, marking a +1.71% move from the prior day. This change outpaced the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.

Coming into today, shares of the semiconductor components maker had lost 2.3% in the past month. In that same time, the Computer and Technology sector gained 2.79%, while the S&P 500 lost 2.95%.

Investors will be hoping for strength from ON Semiconductor Corp. as it approaches its next earnings release. In that report, analysts expect ON Semiconductor Corp. to post earnings of $1.09 per share. This would mark a year-over-year decline of 10.66%. Our most recent consensus estimate is calling for quarterly revenue of $1.92 billion, down 1.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.42 per share and revenue of $7.84 billion. These totals would mark changes of -17.07% and -5.78%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate has moved 0.11% lower. ON Semiconductor Corp. is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 18.11. Its industry sports an average Forward P/E of 17.65, so we one might conclude that ON Semiconductor Corp. is trading at a premium comparatively.

It is also worth noting that ON currently has a PEG ratio of 4.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 1.44 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

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