12 Best S&P 500 Stocks to Invest in According to Analysts

5. ON Semiconductor Corporation (NASDAQ:ON)

Average Share Price Upside Potential as of January 31: 55.58%

Market Cap: $22.29 billion

ON Semiconductor Corporation (NASDAQ:ON) is an American semiconductor supplier company that provides intelligent power and sensing solutions. Its key revenue streams include automotive, industrial, energy, and other industries.

The company’s share price plunged 22% in 2024 due to slower demand and broader macroeconomic challenges. While the short-term outlook may appear less promising, ON Semiconductor Corporation (NASDAQ:ON)’s long-term trajectory remains solid. It ended its most recent quarter (Q3 2024) with $2.8 billion in cash and short-term investments, which allow the company to make further strategic acquisitions and bolster its leadership in high-demand sectors.

In July last year, the company enhanced its intelligent sensing portfolio with the acquisition of SWIR Vision Systems, a leading provider of CQD short wavelength infrared (SWIR) technology, that allows one to see through objects and capture images that were not previously possible. ON Semiconductor Corporation (NASDAQ:ON) is optimistic that the new technology will enable the company to expand its industrial offerings into agriculture, aerospace, medical imaging, and inspection.

Analysts anticipate the company’s end markets to recover by the end of 2025, with the EV sector benefiting from regulatory pressures and subsidies. Its current forward P/E of 12.89, as of January 27, also presents an attractive entry point for investors. Wall Street analysts are bullish on ON Semiconductor Corporation (NASDAQ:ON) with a consensus Buy rating and an average share price upside potential of nearly 56%, making it one of the best large-cap stocks to invest in according to analysts.