Company Performance - ON Semiconductor Corp. closed at $52.32, reflecting a -1.79% change from the previous trading day's closing, which is less than the S&P 500's daily loss of 0.51% [1] - The company experienced a loss of 13.68% over the previous month, underperforming compared to the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87% [1] Upcoming Earnings - The earnings report for ON Semiconductor is scheduled for February 10, 2025, with an expected EPS of $0.98, indicating a 21.6% decrease from the same quarter last year [2] - The consensus estimate for quarterly revenue is $1.76 billion, down 12.87% from the year-ago period [2] Analyst Forecasts - Recent revisions to analyst forecasts for ON Semiconductor should be monitored, as they reflect short-term business trends and can indicate analyst optimism regarding the company's profitability [3] - A 6.79% decline in the Zacks Consensus EPS estimate has been noted over the past month, and ON Semiconductor currently holds a Zacks Rank of 5 (Strong Sell) [5] Valuation Metrics - ON Semiconductor has a Forward P/E ratio of 12.82, which is a discount compared to the industry's average Forward P/E of 37.75 [6] - The company has a PEG ratio of 10.02, significantly higher than the average PEG ratio of 2.59 for the Semiconductor - Analog and Mixed industry [7] Industry Context - The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 233, placing it in the bottom 8% of over 250 industries [8]

Group 1 - The company focuses on GARP (growth at a reasonable price) stocks while also exploring various investment opportunities [1] - The investment strategy is based on the validity of the investment thesis, with no specified time horizon for holding stocks [1] - The company has developed market-beating algorithms using Python to identify attractive investment opportunities within its portfolio since 2016 [1] Group 2 - The company has experience working at TipRanks as an analysis/news writer and editor, which has enhanced its market awareness and understanding of reader interests [2] - As an editor, the company emphasized the importance of accuracy and detail, recognizing the prevalence of misinformation in the market [2] - The goal of the company is to provide accurate and useful information to its audience [2] Group 3 - The company was previously associated with Investor's Compass [3]

Needham analyst N. Quinn Bolton maintained ON Semiconductor ON with a Buy and lowered the price target from $87 to $66.Bolton met with ON Semiconductor management at the annual Consumer Electronics Show last week.Like recent quarters, end demand conditions remain muted across the company’s key industrial and automotive end markets, and inventory digestion continues.Also Read: Verizon Hits 5.5 Gbps 5G Speeds, Lands Air Force Deal to Upgrade Base Networks NationwideIn the near term, turn orders have been weak ...

On Semiconductor has numerous growth opportunities.In today's video, I discuss On Semiconductor (ON -7.05%), its business strategy, growth opportunities, potential risks, and why artificial intelligence stock investors should not ignore this massive social company.*Stock prices used were the market prices of January 9, 2025. The video was published on January 10, 2025. ...

There has been more supply, or shares for sale, than there has been demand, or shares to buy, for ON Semiconductor Corporation ON, pushing the price lower.There is a good chance that a new downtrend is forming. This is why our team of technical analysts has made it our Stock of the Day.Sometimes, analysts overcomplicate technical analysis. They seem to forget that if understood and applied correctly, it is the analysis of supply and demand in a market.If demand and supply are equal, or if there’s more deman ...

Group 1 - ON Semiconductor Corp. closed at $64.51, with a +0.94% change from the previous day, outperforming the S&P 500 which gained 0.55% [1] - The upcoming earnings release is expected to show an EPS of $0.99, reflecting a 20.8% decline year-over-year, and revenue is projected at $1.76 billion, indicating a 12.73% drop compared to the same quarter last year [2] - Recent analyst estimate revisions are crucial as they indicate near-term business trends, with positive revisions suggesting optimism about the company's profitability [3] Group 2 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates ON Semiconductor Corp. currently holds a Zacks Rank of 4 (Sell), with the consensus EPS estimate having increased by 0.18% over the past month [5] - ON Semiconductor Corp. has a Forward P/E ratio of 14.6, significantly lower than the industry average of 36.43, and a PEG ratio of 6.27 compared to the industry average PEG ratio of 2.42 [6] - The Semiconductor - Analog and Mixed industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 190, placing it in the bottom 25% of over 250 industries, indicating weaker performance compared to higher-ranked industries [7]

Company Overview - ON Semiconductor is a semiconductor company specializing in intelligent power solutions and intelligent sensing technologies, primarily serving the industrial and automotive sectors [2] - The company's power solutions, particularly silicon carbide chips for electric vehicles (EVs), help automakers reduce vehicle weight and extend range [3] - Its intelligent sensing technologies are crucial for advanced driver-assistance systems (ADAS) and the digitization of factories and buildings [3][4] Market Prospects - The automotive sector is poised for growth with the rise of EVs and ADAS, while the industrial sector benefits from smart factories and buildings driven by industrial automation and AI analytics [5] - Both key end markets (automotive and industrial) have strong long-term growth potential [5] Recent Challenges - The company faced a 24 5% decline in stock price last year due to weakness in its key end markets over the past 18 months [1] - In the industrial sector, the Institute for Supply Management Purchasing Managers Index (PMI) has been below 50 (indicating contraction) every month since November 2022, except for March 2024 [6] - High interest rates have made car loans more expensive, reducing vehicle sales and production, while a flood of EV models has further pressured demand [7] - In 2023, the company revised its silicon carbide chip revenue estimate for the automotive sector down to $800 million from $1 billion due to reduced demand from a key customer [8] - In 2024, the company expects silicon carbide revenue growth to be in the low- to mid-single digits compared to 2023 [9] Recovery Outlook - The company anticipates an L-shaped recovery, with muted demand, ongoing inventory digestion, and slow end-market demand persisting [10] - Management has adopted a cautious approach to guidance, avoiding overly optimistic expectations [10] Valuation and Investment Case - The stock currently trades at 15 7 times Wall Street's 2024 EPS estimate of $4, and 14 6 times the 2025 EPS estimate of $4 29, with modest revenue growth expectations of 4 2% for 2025 [12] - The semiconductor market is cyclical, and the current downturn is creating fear among investors, but a recovery is expected, potentially making 2024 a trough in earnings [13] - If the company maintains its current valuation, the stock has significant upside potential and could be a long-term hold [14]

Acquisitions and Portfolio Expansion - The company has acquired Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology, including the United Silicon Carbide subsidiary from Qorvo, for $115 million [1] - This acquisition enhances the company's EliteSiC power portfolio, supporting energy-efficient power supply solutions for AI data centers and advancements in EV battery disconnects and solid-state circuit breakers [15] - Frequent buyouts expand the company's capabilities but introduce integration risks that could complicate future growth [18] Partnerships and Client Base - The company has a strong partner base, including Volkswagen, which drives growth [2] - A multi-year deal with Volkswagen Group was announced to supply a complete power box solution featuring silicon carbide-based technologies for next-generation traction inverters, enhancing EV efficiency and performance [12] - The company has a long-term partnership with DENSO Corporation to advance the procurement of autonomous driving and advanced driver assistance systems technologies [19] - For over a decade, the company has supplied DENSO with intelligent automotive sensors to enhance vehicle intelligence and connectivity, aiming to reduce traffic accident fatalities [6] Financial Performance and Estimates - The company's shares have lost 20.2% over the trailing 12 months against the Zacks Computer & Technology sector's return of 34.8% [9] - For the fourth quarter of 2024, the company expects revenues between $1.71 billion and $1.81 billion, indicating a year-over-year decline of 12.73% [10] - Non-GAAP earnings for the fourth quarter are expected to be between 92 cents per share and 1.04 cents, with a Zacks Consensus Estimate of 99 cents per share, indicating a year-over-year decline of 20.8% [14] - For 2024, the Zacks Consensus Estimate for revenues is pegged at $7.12 billion, indicating a year-over-year decline of 13.70%, and the consensus mark for earnings is pegged at $4 per share, indicating a 22.48% decline year over year [17] Market Challenges and Opportunities - The company is suffering from macroeconomic uncertainty, which has impacted investor confidence and is likely to weigh on performance [4] - Soft demand across automotive and industrial markets, inventory digestion, and weaker-than-expected growth in key sectors are expected to hurt the company's top line [7] - The underperformance can be attributed to muted demand due to ongoing inventory digestion and sluggish end markets, particularly in North America and Europe [13] - Prospects are expected to ride on strong growth in silicon carbide, particularly in utility-scale solar and China BEVs, along with increased demand for intelligent sensing solutions and power delivery for AI data centers [16] Valuation and Investment Considerations - The company's stock is not considered cheap, with a Value Score of C suggesting a stretched valuation at this moment [11] - The company carries a Zacks Rank 3 (Hold), implying investors should wait for a more favorable entry point to accumulate the stock [3]

Billionaire Stanley Druckenmiller, a George Soros protégé, is known for his “top-down” investing style. Druckenmiller’s strategy focuses on making large bets on macroeconomic trends, prioritizing top-performing industries over individual companies.The Bowdoin College and University of Michigan alumnus recently upped his stake in Broadcom Inc AVGO, a $1 trillion semiconductor company based in San Jose, California.Druckenmiller closed his hedge fund, Duquesne Capital in 2010, but still maintains the Duquesne ...

On Semiconductor (ON) recently announced its agreement to acquire the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo (QRVO) for $115 million in cash. The acquisition from Qorvo enhances ON’s EliteSiC power portfolio, enabling the company to meet the growing demand for high energy efficiency and power density in AC-DC power supply units for AI data centers. The move also positions ON to accelerate its readiness for ...