ON Semiconductor Corporation (NASDAQ: ON) Analysis: Is It The One You’re Looking For?

ON Semiconductor Corporation (NASDAQ:ON) traded at $51.90 at last check on Tuesday, April 26, made a downward move of -2.95% on its previous day’s price.

Looking at the stock we see that its previous close was $53.48 and the beta (5Y monthly) reads 1.72 with the day’s price range being $51.0737 – $53.53. The company has a trailing 12-month PE ratio of 23.51. In terms of its 52-week price range, ON has a high of $71.25 and a low of $34.01. The company’s stock has lost about -15.89% over that past 30 days.

ON Semiconductor Corporation has a market cap of $24.85 billion and is expected to release its quarterly earnings report on May 02, 2022 – May 06, 2022. Estimates by analysts give the company expected earnings per share (EPS) of $0.93, with the EPS growth for the year raised at $2.8 for 2021 and $3.26 for next year. These figures represent 229.40% and 16.40% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $1.79 billion, with a low of $1.79 billion and a high of $1.8 billion. The median projection represents growth squeezing down to 23.80% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2021 is expected to hit $6.68 billion, or 27.20% up from figures reported last year.

There have been 1 upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the ON stock, short term indicators assign the stock an average of 50% Sell, while medium term indicators assign it an average of Hold. Long term indicators on average place the stock in the category of 50% Sell.

Based on estimates by 29 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 8 have rated the ON Semiconductor Corporation (ON) stock as a Hold, while 17 rate it as a Buy. 4 analyst(s) rate it as overweight while 0 of them rated it as underweight, whereas 0 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.

Looking further, we note that the PEG ratio for the ON stock currently stands at 1.25, and the most recent price level today is -8.39% off its SMA20 and -11.39% from its 50-day simple moving average. The RSI (14) is pointing at 39.78 while the volatility over the past week is 5.05% and jumps to 4.63% over the past one month. The beta value is 1.74, while the average true range (ATR) is currently pointing at 2.63. The average price target for the stock over the next 12 months is $73.04, with the estimates having a low of $55.00 and a high of $90.00. These price ends are -5.97% and -73.41% off the today’s price level respectively, although investors could be excited at the prospect of a -42.58% if the ON share price touches on the median price of $74.00.

Let’s briefly compare ON Semiconductor Corporation (ON) stock to its peers. We find that today’s price change of -2.95% and 22.10% over the past 12 months for ON competes that of NVIDIA Corporation (NVDA), which has seen its stock price fall -4.38% in the latest trading session and is 28.58% over the last one year. Another of its peers Broadcom Inc. (AVGO) has dropped -2.97% today, and was 24.59% up over the past year, while QUALCOMM Incorporated (QCOM) is also down -1.65% yet, while its price remains in the red at -1.73% over the same period. ON Semiconductor Corporation has a P/E ratio of 23.51 compared to NVIDIA Corporation’s 51.76 and Broadcom Inc.’s 33.49. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at -1.98% and -1.64%, respectively, in early deals.

Coming back to ON Semiconductor Corporation (NASDAQ:ON), we note that the average 3-month trading volume was 7.07 million, while that of the preceding 10-day period stands at 5.17 million. Current shares outstanding are 431.40 million.

The insiders hold 0.20% of the company’s shares while institutions hold 97.60%. The data shows that short shares as of Feb 14, 2022, stood at 13.34 million at a short ratio of 1.41. This represents a 3.08% short interest in shares outstanding on Feb 14, 2022. Shares short fall in February from the previous month at 20.42 million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock -21.26% down in year-to-date price movement.