Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified ON Semiconductor as such a stock due to the following factors:
- ONNN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.4 million.
- ONNN is up 2.5% today from today's close.
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More details on ONNN:
ON Semiconductor Corporation designs, manufactures, and markets semiconductor components for electronic systems and products worldwide. It operates in three segments: Application Products Group, Standard Products Group, and System Solutions Group. ONNN has a PE ratio of 21.4. Currently there are 10 analysts that rate ON Semiconductor a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for ON Semiconductor has been 5.5 million shares per day over the past 30 days. ON Semiconductor has a market cap of $4.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.57 and a short float of 2.2% with 1.71 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Wednesday.
rates ON Semiconductor as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- ONNN's revenue growth has slightly outpaced the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 16.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 54.09% to $92.30 million when compared to the same quarter last year. In addition, ON SEMICONDUCTOR CORP has also vastly surpassed the industry average cash flow growth rate of -79.88%.
- 41.76% is the gross profit margin for ON SEMICONDUCTOR CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ONNN's net profit margin of 4.99% significantly trails the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full ON Semiconductor Ratings Report.