5 Undervalued Cyclical Stocks To Invest In According to Analysts

1. ON Semiconductor Corporation (NASDAQ:ON)

PE ratio as of April 18: 12.84

Average Analyst Price Target Upside: 93.39%

Number of Hedge Fund Holders: 45

ON Semiconductor Corporation (NASDAQ:ON) is a semiconductor company, and it is an undervalued stock, as its price-to-earnings ratio is 12.84, as of April 18.

ON Semiconductor Corporation (NASDAQ:ON) occupies the first place on our list of undervalued cyclical stocks to invest in according to analysts as 20 Wall Street analysts have covered the stock, and 15 keep a Buy-equivalent rating on the stock. As of April 18, the average price target of $121.37 implies an upside of 93.39% from present levels.

In Q4 of 2023, 45 hedge funds held positions in ON Semiconductor Corporation (NASDAQ:ON), and their total stakes amounted to $885.107 million. As of the fourth quarter of 2023, D E Shaw is the most prominent shareholder in the company. The firm has increased its stake in the company by 66% to 2.975 million shares worth $248.534 million.

Artisan Select Equity Fund stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its first quarter 2024 investor letter:

“Among our top detractors were Atlassian, ON Semiconductor Corporation (NASDAQ:ON) and Exact Sciences. ON Semiconductor is a leading designer and manufacturer of chips for power management and image sensing. From a battery-electric vehicle (EV) standpoint, ON is a leading producer of silicon carbide chips. Shares have been under pressure as the company grapples with multiple quarters of inventory right-sizing across the entire auto supply chain and slower-than-expected growth of EV sales. However, ON is seeing smaller sales declines than peers due to market share gains, and we believe the company will be equally well positioned if automakers rebalance their efforts from full EVs toward hybrid vehicles. We remain patient.”

Should you invest $1,000 in ON Semiconductor Corporation (NASDAQ:ON) right now?

Before you buy stock in ON, consider this:

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Disclosure: None. You can also look at the 30 Least Developed Countries in Africa in 2024 and Bill Miller’s Latest 13 Stock Picks.

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