A 6-Day Winning Streak Has ON Semiconductor Stock Up 14%
Shares of ON Semiconductor (ON) have closed higher in each of the last 6 sessions, a cumulative gain of 14.1%. That added about $4.2 billion to the company’s market value, which now stands at about $33.7 billion. The stock closed at $86.31 on Tuesday, October 6, 35.6% below its 52-week high of $133.93 and 92.2% above its low of $44.90.
How The Streak Stacks Up Against The S&P 500
Returns for ON and the S&P 500 over the streak and the periods around it, all ending Tuesday, October 6 and including dividends:
| Return Period | ON | S&P 500 |
|---|---|---|
| 1 Day | 0.4% | 0.6% |
| 6 Days (Current Streak) | 14.1% | 1.8% |
| 1 Month (21 Trading Days) | 16.0% | 1.4% |
| 3 Months (63 Trading Days) | -8.0% | 4.8% |
| Year To Date | 59.4% | 15.2% |
| 1 Year (252 Trading Days) | 75.2% | 17.8% |
Is This Move About ON Semiconductor Or The Market?
Over the same 6 trading days, the S&P 500 returned +1.8% including dividends, so the run is mostly ON Semiconductor’s own story rather than the market’s. 5 other S&P 500 stocks are currently on winning streaks of 6 days or longer. Over the past three months the stock is down 8.0%, a window that includes the streak; over the other 57 sessions of that window it was down 19.3%.
Is The Business Keeping Up With The Stock?
On the fundamentals, revenue declined 3.1% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; and its operating margin is 18.0%, versus a median of 21.7%. At least one of the last four quarters was a loss, so a price-to-earnings multiple would not be a meaningful yardstick here. The numbers make the run harder to justify: shrinking revenue and margins below the median. At this price, the stock is asking a lot of the business.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
For anyone who would rather back the theme than one company, a semiconductor ETF like SOXX holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
Momentum Is A Tailwind, Not A Plan
Riding a stock that rises every day feels effortless, and that is precisely the danger: the same momentum that built this run can reverse without notice, and one name’s reversal should never be able to reset your whole year.
That is what the Trefis High Quality (HQ) Portfolio is for: about 30 quality businesses screened for the fundamentals that survive momentum’s mood swings, held with rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Watch the runs; own the resilience.