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On Holding (ONON) Surpasses Market Returns: Some Facts Worth Knowing

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On Holding (ONON - Free Report) closed at $59.04 in the latest trading session, marking a +1.2% move from the prior day. This change outpaced the S&P 500's 0.39% gain on the day. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.

The running-shoe and apparel company's stock has climbed by 5.54% in the past month, falling short of the Retail-Wholesale sector's gain of 8.29% and outpacing the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of On Holding in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.20, showcasing a 433.33% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $666.44 million, indicating a 32.05% growth compared to the corresponding quarter of the prior year.

Investors should also note any recent changes to analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.38% higher. As of now, On Holding holds a Zacks Rank of #2 (Buy).

Looking at its valuation, On Holding is holding a Forward P/E ratio of 51.57. This signifies a premium in comparison to the average Forward P/E of 15.87 for its industry.

One should further note that ONON currently holds a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.26.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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