Stocks Slip As Strong November Retail Sales Raise Concerns Over 2025 Fed Rate Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
0mins
Should l Buy ON?
Source: Benzinga
Market Reaction to Retail Sales Data: Wall Street opened lower as strong retail sales data raised concerns about the Federal Reserve potentially delaying interest rate cuts, with major indices like the S&P 500 and Nasdaq experiencing declines.
Investor Sentiment and Fed Outlook: The robust retail sales figures, alongside other economic indicators, have led to uncertainty regarding the Fed's future rate decisions, with expectations for fewer rate cuts next year than previously anticipated.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ON is 61.25 USD with a low forecast of 50.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 65.200
Low
50.00
Averages
61.25
High
80.00
Current: 65.200
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation operates under the onsemi brand. It provides intelligent power and intelligent sensing solutions. Its segments include the Power Solutions Group (PSG), the Analog & Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG). PSG offers an array of discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. AMG designs and develops analog, mixed-signal, Power Management ICs, Sensor Interface devices, Power Conversion, Signal Chain, and Voltage Regulation devices for a broad base of end-users in the automotive, industrial, computing and mobile end-markets. ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM, SPAD arrays and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ON Semiconductor Set to Release Q4 Earnings on February 9th
- Earnings Announcement: ON Semiconductor is set to announce its Q4 2023 earnings on February 9th after market close, with consensus EPS estimate at $0.62, reflecting a 34.7% year-over-year decline, and revenue estimate at $1.54 billion, down 11% year-over-year.
- Historical Performance: Over the past two years, ON has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a strong track record of performance amidst market fluctuations.
- Estimate Revisions: In the last three months, EPS estimates have seen 15 upward revisions and 8 downward revisions, while revenue estimates have experienced 20 upward revisions and 8 downward revisions, showcasing market uncertainty regarding future performance.
- Increased Market Attention: With stronger demand anticipated for analog chips, BNP Paribas has upgraded ON Semiconductor and its peers, reflecting growing confidence in a cyclical recovery within the semiconductor industry.
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ON Semiconductor Set to Release Q4 Earnings
- Earnings Release Announcement: ON Semiconductor is set to release its fourth-quarter earnings after the market closes on February 9, with analysts projecting earnings of 62 cents per share, down from 95 cents in the same period last year, indicating profitability challenges ahead.
- Revenue Expectations Decline: According to Benzinga Pro, the consensus estimate for ON Semiconductor's quarterly revenue stands at $1.54 billion, a decrease from $1.72 billion a year earlier, suggesting a potential weakening in market demand that could impact overall performance.
- Share Repurchase Program: ON Semiconductor announced on November 18 that its board approved a share repurchase program of up to $6 billion to be executed over the next three years, aimed at enhancing shareholder value and boosting market confidence.
- Stock Performance: ON Semiconductor shares rose 3.3% to close at $65.20 on Friday, reflecting a positive investor response to the company's stock repurchase plan despite the looming earnings forecast decline, indicating sustained market confidence.
See More
ON Semiconductor in Focus Ahead of Earnings Report
- Earnings Expectations: ON Semiconductor is expected to report Q4 earnings per share of 62 cents and revenue of $1.54 billion, having beaten revenue estimates in three of the last four quarters, indicating strong market competitiveness.
- Recent Performance: In the latest report on November 3, ON posted earnings of 63 cents per share, surpassing the consensus estimate of 59 cents, with revenue of $1.55 billion exceeding the $1.51 billion estimate, reflecting robust operational performance.
- Technical Analysis: The stock is currently trading 4.9% above its 20-day simple moving average and 20.3% above its 100-day SMA, indicating a strong long-term trend, with shares up 38.61% over the past 12 months, nearing 52-week highs.
- Market Sentiment: While the relative strength index (RSI) at 62.58 indicates neutral momentum, the MACD below its signal line suggests potential bearish pressure, prompting investors to trade cautiously amid market fluctuations.
See More
U.S. Stock Futures Decline Amid Cautious Market Sentiment
- Market Sentiment Dips: Following a strong rebound on Friday, U.S. stock futures declined on Monday, reflecting cautious market sentiment amid concerns over upcoming economic data, particularly regarding inflation and labor market changes.
- Japanese Market Surge: The Nikkei 225 index broke the 57,000-point barrier for the first time, driven by Prime Minister Sanae Takaichi's landslide election victory and a high-profile endorsement from Trump, indicating a robust recovery in Japan that may attract more international investors.
- Stable Treasury Yields: The 10-year Treasury bond yield stood at 4.22%, while the two-year yield was at 3.50%, suggesting market expectations for the Federal Reserve's future interest rate policy are stabilizing, with an 84.2% likelihood of rates remaining unchanged in March.
- Stock Dynamics: FedEx shares rose 0.47% after announcing plans to acquire InPost for €7.8 billion, showcasing a proactive business expansion strategy, while ON Semiconductor fell 1.38% as analysts expect quarterly earnings to miss expectations.
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- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
ON Semiconductor Set to Release Q4 Earnings on February 9th
- Earnings Announcement: ON Semiconductor is set to announce its Q4 2023 earnings on February 9th after market close, with consensus EPS estimate at $0.62, reflecting a 34.7% year-over-year decline, and revenue estimate at $1.54 billion, down 11% year-over-year.
- Historical Performance: Over the past two years, ON has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a strong track record of performance amidst market fluctuations.
- Estimate Revisions: In the last three months, EPS estimates have seen 15 upward revisions and 8 downward revisions, while revenue estimates have experienced 20 upward revisions and 8 downward revisions, showcasing market uncertainty regarding future performance.
- Increased Market Attention: With stronger demand anticipated for analog chips, BNP Paribas has upgraded ON Semiconductor and its peers, reflecting growing confidence in a cyclical recovery within the semiconductor industry.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
ON Semiconductor Set to Release Q4 Earnings
- Earnings Release Announcement: ON Semiconductor is set to release its fourth-quarter earnings after the market closes on February 9, with analysts projecting earnings of 62 cents per share, down from 95 cents in the same period last year, indicating profitability challenges ahead.
- Revenue Expectations Decline: According to Benzinga Pro, the consensus estimate for ON Semiconductor's quarterly revenue stands at $1.54 billion, a decrease from $1.72 billion a year earlier, suggesting a potential weakening in market demand that could impact overall performance.
- Share Repurchase Program: ON Semiconductor announced on November 18 that its board approved a share repurchase program of up to $6 billion to be executed over the next three years, aimed at enhancing shareholder value and boosting market confidence.
- Stock Performance: ON Semiconductor shares rose 3.3% to close at $65.20 on Friday, reflecting a positive investor response to the company's stock repurchase plan despite the looming earnings forecast decline, indicating sustained market confidence.
See More
ON Semiconductor in Focus Ahead of Earnings Report
- Earnings Expectations: ON Semiconductor is expected to report Q4 earnings per share of 62 cents and revenue of $1.54 billion, having beaten revenue estimates in three of the last four quarters, indicating strong market competitiveness.
- Recent Performance: In the latest report on November 3, ON posted earnings of 63 cents per share, surpassing the consensus estimate of 59 cents, with revenue of $1.55 billion exceeding the $1.51 billion estimate, reflecting robust operational performance.
- Technical Analysis: The stock is currently trading 4.9% above its 20-day simple moving average and 20.3% above its 100-day SMA, indicating a strong long-term trend, with shares up 38.61% over the past 12 months, nearing 52-week highs.
- Market Sentiment: While the relative strength index (RSI) at 62.58 indicates neutral momentum, the MACD below its signal line suggests potential bearish pressure, prompting investors to trade cautiously amid market fluctuations.
See More
U.S. Stock Futures Decline Amid Cautious Market Sentiment
- Market Sentiment Dips: Following a strong rebound on Friday, U.S. stock futures declined on Monday, reflecting cautious market sentiment amid concerns over upcoming economic data, particularly regarding inflation and labor market changes.
- Japanese Market Surge: The Nikkei 225 index broke the 57,000-point barrier for the first time, driven by Prime Minister Sanae Takaichi's landslide election victory and a high-profile endorsement from Trump, indicating a robust recovery in Japan that may attract more international investors.
- Stable Treasury Yields: The 10-year Treasury bond yield stood at 4.22%, while the two-year yield was at 3.50%, suggesting market expectations for the Federal Reserve's future interest rate policy are stabilizing, with an 84.2% likelihood of rates remaining unchanged in March.
- Stock Dynamics: FedEx shares rose 0.47% after announcing plans to acquire InPost for €7.8 billion, showcasing a proactive business expansion strategy, while ON Semiconductor fell 1.38% as analysts expect quarterly earnings to miss expectations.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
