This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ON Semiconductor, Vishay: Semi Winners

NEW YORK ( TheStreet) -- ON Semiconductor (ONNN) stock is jumping by more than 3% Monday as it rebounds after a broad selloff last week.

ON Semiconductor last week reported fourth-quarter earnings that beat Wall Street consensus estimates, triggering a sell-off soon afterwards. However, its price rebounded today and Collins Stewart analyst John Vinh sees much upside potential for this stock. "This is kind of a recovery and gross margin expansion story," Vinh says. "They're going to continue to expand."

ON Semiconductor has a first-quarter gross margin outlook of 40% to 41%, including stock-based compensation or about 42% without it. Meanwhile, non-GAAP gross margin in the fourth quarter was 39.9% including stock-based compensation expense.

Vinh notes that ON Semiconductor has been closing down several fabrication plants and consolidating capacity, which allows the company to drive higher gross margins. ON Semiconductor already closed three fabrication plants in 2009 and may soon close another in Phoenix.

ON Semiconductor stock fell back to $7.70, up 2.4%, after rising more than 3% earlier today.

Vinh, for one, has a buy recommendation for ON Semiconductor with a $10 price target. He continues to be very positive on the semiconductor sector, noting that some of its channel inventories have been extremely lean, and adding that he isn't concerned about excess channel, which is being offset by healthy demand.

The company's peers have also advanced. Fairchild Semiconductor (FCS - Get Report) is up 3.5% at $9.20 and Vishay (VSH - Get Report) has increased 4.9% to $8.10. Diodes (DIOD - Get Report) has added 2.9% at $17.40.

-- Reported by Andrea Tse in New York

>>See our new stock quote page.

Follow on Twitter and become a fan on Facebook.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ONNN $0.00 0.00%
DIOD $21.80 5.30%
FCS $19.48 -0.05%
VSH $11.88 0.81%
AAPL $118.03 -0.71%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs