Valued at $27.6 billion by market cap, ON Semiconductor Corporation (ON) is a global leader in the semiconductor industry. Headquartered in Scottsdale, Arizona, the company provides a diverse portfolio of innovative products and solutions that serve key markets such as automotive, industrial, and communications.
Companies valued at over $10 billion are often categorized as “large-cap stocks,” a distinction ON Semiconductor fits this category through its strong market position. ON Semiconductor’s commitment to driving energy efficiency, enabling sustainable technologies, and delivering cutting-edge semiconductor solutions highlights its resilience, adaptability, and capacity to thrive in a rapidly evolving and increasingly electrified global landscape.
ON Semiconductor shares are down 24.7% from their 52-week high of $86.10, achieved on Dec. 27, 2023. Over the past three months, the stock has declined 11.7%, significantly underperforming the broader Dow Jones Industrials Average’s ($DOWI) marginal gains over the same time frame.
Over the past 52 weeks, ON stock has dropped 23.5% and is down 22.4% on a YTD basis, significantly underperforming the Dow’s YTD growth of 12.3% and its 12.7% return over the past year.
ON has demonstrated bearish momentum, remaining below its 50-day and 200-day moving averages over the past year, with a few fluctuations.
ON Semiconductor saw its stock decline by over 4% on Dec. 18, contributing to a broader selloff in chip stocks.
On Oct. 28, ON Semiconductor delivered its Q3 earnings results, prompting a 3.4% increase in its stock in the subsequent trading session. Its adjusted EPS came in at $0.99, a 28% decline year-over-year, yet exceeding the consensus estimate of $0.97. Additionally, adjusted revenue came in at $1.76 billion, reflecting a 19.2% year-over-year decrease but narrowly surpassing Wall Street expectations of $1.75 billion.
The company has provided its fourth-quarter 2024 guidance, projecting revenue in the range of $1.71 billion to $1.81 billion and non-GAAP diluted earnings per share between $0.92 and $1.04.
Highlighting the contrast in performance, ON’s competitor, STMicroelectronics N.V. (STM), has underperformed the stock. STM has declined 51.2% on a YTD basis and 51.5% over the past year.
Despite its recent weak price action, analysts are cautiously optimistic about ON Semiconductor. The stock has a consensus “Moderate Buy” rating from 31 analysts, with a mean price target of 86.67, which indicates a potential upside of 33.8% from its current level.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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