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On Holding (ONON) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw On Holding (ONON - Free Report) ending at $54.04, denoting a +0.13% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.27%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.03%.

Prior to today's trading, shares of the running-shoe and apparel company had lost 0.97% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.91% and the S&P 500's gain of 4.27% in that time.

The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. The company is scheduled to release its earnings on March 4, 2025. The company's upcoming EPS is projected at $0.20, signifying a 433.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $666.44 million, showing a 32.05% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for On Holding should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 past month, there's been a 1.38% rise in the Zacks Consensus EPS estimate. On Holding presently features a Zacks Rank of #2 (Buy).

Investors should also note On Holding's current valuation metrics, including its Forward P/E ratio of 47.71. This expresses a premium compared to the average Forward P/E of 14.97 of its industry.

It's also important to note that ONON currently trades at a PEG ratio of 0.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.13 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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