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On Holding (ONON) Laps the Stock Market: Here's Why

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In the latest trading session, On Holding (ONON - Free Report) closed at $37.83, marking a +1.58% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.04%. Elsewhere, the Dow saw an upswing of 0.76%, while the tech-heavy Nasdaq appreciated by 1.03%.

Coming into today, shares of the running-shoe and apparel company had lost 1.82% in the past month. In that same time, the Consumer Discretionary sector lost 5.13%, while the S&P 500 lost 6.74%.

Market participants will be closely following the financial results of On Holding in its upcoming release. The company plans to announce its earnings on August 13, 2024. In that report, analysts expect On Holding to post earnings of $0.18 per share. This would mark year-over-year growth of 350%. In the meantime, our current consensus estimate forecasts the revenue to be $624.96 million, indicating a 26.46% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $0.96 per share and a revenue of $2.57 billion, demonstrating changes of +146.15% and +28.65%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for On Holding. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.94% higher. On Holding currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that On Holding has a Forward P/E ratio of 38.97 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.83.

Meanwhile, ONON's PEG ratio is currently 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Products industry had an average PEG ratio of 1.05 as trading concluded yesterday.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 235, positioning it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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