A resistance level has emerged in the chart of ON Semiconductor Inc. (ON). Once again the stock is approaching this level and a breakout could occur…
ON Semiconductor Inc. (ON) spun off from Motorola in 1999 and has since become a leading supplier of chips into automotive and industrial markets, with products in analog, discrete, power management, and image sensing.
The company is benefiting from an improving macroeconomic environment, especially in the automotive end market. The growth in demand for image sensors and advanced driver-assistance systems bodes well for the company. Plus, the need for silicon carbide and silicon power products needed by electric vehicles should also aid growth.
ON had $1.1 billion in cash as of the end of the most recent quarter, compared with only $532 million in short-term debt, indicating a strong balance sheet. The firm is also in a strong growth position as earnings were up 11.3% over the past year. EPS is forecasted to soar 230% in the current quarter.
The stock is trading at a high multiple with a trailing P/E of 69.82. ON has shown bullish momentum over the near and long-term leading to a Momentum Grade of B in our POWR Ratings system.
Take a look at the 1-year chart of ON below with added notations…
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