Chip stocks have gotten crushed recently—and shares of ON Semiconductor are no exception. It’s cheap now, and could pop if it beats earnings expectations on Monday.
With the stock down so much in a short time, though, much of those concerns are likely reflected in ON’s shares. And with the company set to report earnings on Monday, it will have a chance to show that concerns about China, industrials, and other businesses are holding up just fine. Newsletter Sign-up ON, though, has a track record of beating earnings estimates, topping forecasts in 17 of the last 20 quarters, according to FactSet, and has grown sales at about 11% annually in the past four years. That’s why “we remain buyers ahead of ON’s print on 10/30 and reiterate our overweight rating and $130 price target,” writes Wells Fargo analyst Gary Mobley.