Top Picks 2018: ON Semiconductor (ON)
01/11/2018 5:00 am EST
The company makes sensors and power-management components in automotive, industrial, and computing products.
The stock earns a value score of 86 (out of 100) in or proprietary Quadrix ranking system and trades at a substantial discount to the semiconductor group on most valuation ratios.
Given the company’s operating momentum, the appealing valuation is a bit of a surprise. The firm’s sales rose more than 50% and its per-share proﬁts more than doubled over the last year, helped by an acquisition.
Proﬁt margins extended a multiyear uptrend. The company reported solid pricing power and continued strong demand trends in the most recent quarter. Analysts target proﬁt growth of 27% for the December quarter and 15% for 2018.