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On Holding (ONON) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, On Holding (ONON - Free Report) closed at $46.50, marking a -1.94% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 0.8%.

Shares of the running-shoe and apparel company have depreciated by 4.53% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 1.16% and the S&P 500's loss of 0.97%.

The upcoming earnings release of On Holding will be of great interest to investors. The company's earnings report is expected on November 12, 2024. The company is predicted to post an EPS of $0.24, indicating a 9.09% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $718.84 million, reflecting a 32.18% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.98 per share and revenue of $2.65 billion, indicating changes of +151.28% and +32.94%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.49% lower. On Holding is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, On Holding is presently being traded at a Forward P/E ratio of 48.46. For comparison, its industry has an average Forward P/E of 16.57, which means On Holding is trading at a premium to the group.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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