For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. ON Semiconductor (ON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
ON Semiconductor is one of 647 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ON Semiconductor is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ON’s full-year earnings has moved 12.6% higher within the past quarter. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, ON has moved about 93.9% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 29.8%. This shows that ON Semiconductor is outperforming its peers so far this year.
Looking more specifically, ON Semiconductor belongs to the Semiconductor – Analog and Mixed industry, which includes 10 individual stocks and currently sits at #25 in the Zacks Industry Rank. On average, stocks in this group have gained 36.3% this year, meaning that ON is performing better in terms of year-to-date returns.
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