2024-02-11 13:30:00 ET
Summary
- ON Semiconductor Corporation issued a tepid Q1'24 guidance, but the stock didn't crash.
- ON has clawed back most of its January losses, even though 2024 could be another year of disappointing growth.
- onsemi remains well-positioned to gain more share in the SiC market, partaking in the recovery in the automotive market.
- While near-term demand headwinds could sap confidence, ON's recent market outperformance suggests the worst is likely over.
- With ON's long-term uptrend bias intact and robust, investors are urged to buy while the market is still pessimistic and not wait until it regains its all-time highs.
ON Semiconductor Corporation or onsemi ( ON ) investors who decided to buy in November after its third-quarter earnings plunge have done well, outperforming the S&P 500 ( SPX ) ( SPY ) since my previous update. I highlighted the capitulation of ON in my November article , arguing why ON's valuation has normalized from its 2023 highs. As a result, it looked much more attractive, leading me to add exposure, given the fantastic dip-buying opportunity. As a result, I upgraded ON, assessing a solid setup for new and current investors to pick their spots....
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ON Semiconductor: Post-Earnings Pop On Soft Guidance Is A Good Sign