5 Stocks That Will Skyrocket

2. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders: 48

Share price as of August 10: $66.33

ON Semiconductor Corporation (NASDAQ:ON) is an information technology company providing intelligent sensing and power solutions globally. The company is based in Phoenix, Arizona. There were 48 hedge funds holding stakes in ON Semiconductor Corporation (NASDAQ:ON) in the first quarter, compared to 47 hedge funds in the previous quarter. Their total stake values were $1.3 billion and $1.6 billion respectively.

On August 2, Mark Lipacis, an analyst at Jefferies, kept a ‘Buy’ rating on ON Semiconductor Corporation (NASDAQ:ON). Lipacis also raised his price target on the stock from $75 to $77.

ON Semiconductor Corporation (NASDAQ:ON) had EPS of $1.30 in Q2, beating estimates by $0.10. The company’s revenue was $2.1 billion, up 24.9% year-over-year and topping estimates by $70.7 million. The company is expected to generate 21.5% EPS growth over the next three-to-five years. As of this August, the company’s year-over-year cash flow growth is 88.9%, while the industry average stands at 41.2%.

Artisan Partners, a high value-added investment management firm, mentioned ON Semiconductor Corporation (NASDAQ:ON) in its fourth quarter 2021 investor letter. Here’s what it said:

“ON Semiconductor is a global supplier of advanced semiconductors for sophisticated electronics applications within the automotive, industrial, communications, consumer and computing end-product markets. The company operates across three segments: power solutions, advanced solutions and intelligent sensing. A new management team, which took over toward the end of 2020, is working to dramatically improve the company’s performance by rightsizing its manufacturing footprint, exiting more commoditized products and investing in several compelling growth opportunities. When the dust has settled, we expect the portfolio to be more focused on the auto and industrial segments. As auto OEMs incorporate more automated safety technology and car fleets transition from internal combustion engines to battery electric vehicles, ON’s image sensors for cars and silicon carbide inverters— which extend EV battery efficiency—will be in high demand. This mix shift should drive ON’s margins higher over time. With shares trading at an attractive valuation, we initiated a GardenSM position.”