Stocks to buy

ON Semiconductor Stock Is the Best Semiconductor Play You Haven’t Considered

You might not have heard about ON Semiconductor (NASDAQ:ON) stock until today. That’s fine, because now you can learn about a hidden treasure among microprocessor makers.

For exposure to a company that’s clearly in growth mode, you’ll definitely want to consider ON stock at its current price.

ON Semiconductor makes semiconductors for the automotive industry and other industrial end users. The company’s products are also available to the medical, aerospace/defense, 5G/cloud and other sectors.

With around 33,000 employees worldwide, ON Semiconductor is an expansive business that deserves much more press coverage and investor interest. That’s fine, though, as ON stock could be a secret tech-market weapon in your portfolio.

ON ON Semiconductor $65.98

What’s Happening with ON Stock?

Can you get growth and value at the same time, in a single investment? It’s actually possible if you know where to look, and you ought to be looking at ON Semiconductor.

ON stock is clearly on a positive trajectory, having rallied from $47 at the beginning of June to $67 in early September. This took place even while the broader semiconductor sector remained frustratingly volatile.

Yet, growth isn’t incompatible with value. It might surprise you to discover that ON Semiconductor’s trailing 12-month price-to-earnings (P/E) ratio is just 17.67. In other words, there’s a hard-to-resist bargain to be had here.

And by the way, ON Semiconductor recently joined the prestigious S&P 500 index. In case that’s not enough to convince you, Mizuho analyst Vijay Rakesh issued a “buy” rating for ON stock, along with a price-target increase from $72 to $79.

ON Semiconductor Reported Record Revenue

Still not convinced? No problem – ON Semiconductor’s second-quarter 2022 financial stats should put any concerns to rest.

Impressively, ON Semiconductor reported record quarterly revenue of $2.085 billion, up 25% year over year. This result topped analyst expectations by 3.44%.

That wasn’t the only broken record, though. Specifically, ON Semiconductor posted record GAAP and non-GAAP gross margin of 49.7%, as well as record non-GAAP operating margin of 34.5%. Thus, the company’s margins increased even during an acute, global semiconductor shortage.

Finally, it’s worth noting that ON Semiconductor reported Q2 2022 earnings of $1.34 per share, while Wall Street had only expected $1.26 per share.

Looking ahead, the company anticipates generating $2.07 billion to $2.17 billion in third-quarter revenue – not too shabby, you must admit.

What You Can Do Now

There are, as you can see, many reasons to assign an “A” rating to ON stock. It’s trading at a compelling value, yet is also a growth stock representing a growing company.

As ON Semiconductor breaks fiscal records and enters into the S&P 500, it’s not a question of why you should own the shares, but why you didn’t own them already.

Maybe it’s because you hadn’t heard about ON Semiconductor, but now you have the knowledge, so it’s up to you to take action.

On the date of publication, Louis Navellier had a long position in ON.  Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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