The latest trading session saw ON Semiconductor Corp. (ON) ending at $42.15, denoting a -1.63% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.91%. On the other hand, the Dow registered a loss of 1.5%, and the technology-centric Nasdaq decreased by 1.96%.

The semiconductor components maker's stock has dropped by 14.4% in the past month, falling short of the Computer and Technology sector's loss of 10.57% and the S&P 500's loss of 7.38%.

The investment community will be paying close attention to the earnings performance of ON Semiconductor Corp. in its upcoming release. In that report, analysts expect ON Semiconductor Corp. to post earnings of $0.51 per share. This would mark a year-over-year decline of 52.78%. Alongside, our most recent consensus estimate is anticipating revenue of $1.41 billion, indicating a 24.54% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.49 per share and revenue of $6.07 billion, which would represent changes of -37.44% and -14.3%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ON Semiconductor Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 18.12% lower. ON Semiconductor Corp. is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, ON Semiconductor Corp. is holding a Forward P/E ratio of 17.23. For comparison, its industry has an average Forward P/E of 30.9, which means ON Semiconductor Corp. is trading at a discount to the group.

One should further note that ON currently holds a PEG ratio of 13.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ON's industry had an average PEG ratio of 1.95 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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ON Semiconductor Corporation (ON) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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