2024-05-28 10:44:23 ET
Summary
- ON Semiconductor Corporation's financial performance deteriorated again in Q1 due to high interest rates and a downgrade in long-term revenue growth estimates.
- The company's revenue declined by almost 5% YoY, with only the Power Solutions Group showing growth.
- ON Semiconductor stock is now around 24% overvalued, and positive catalysts are unlikely in the foreseeable future, leading to a "Strong Sell" rating.
Investment thesis
The last time I covered ON Semiconductor Corporation ( ON ) aka onsemi was when the stock spiked after Q4 earnings in early February . Despite the big after earnings rally, I was cautious and called in an overreaction. Thus, it appears that my previous thesis aged well, as the stock price declined by around 6% over the last three months, compared to +7% for the S&P 500 (SP500)....
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For further details see:
ON Semiconductor's Stock Is Now A Sell (Rating Downgrade)