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

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The latest trading session saw On Holding (ONON - Free Report) ending at $47.07, denoting a +1.71% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 1.08%. Elsewhere, the Dow gained 0.92%, while the tech-heavy Nasdaq added 1.41%.

Coming into today, shares of the running-shoe and apparel company had lost 13.27% in the past month. In that same time, the Retail-Wholesale sector lost 11.45%, while the S&P 500 lost 8.26%.

The investment community will be paying close attention to the earnings performance of On Holding in its upcoming release. It is anticipated that the company will report an EPS of $0.24, marking a 36.84% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $766.26 million, indicating a 31.79% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.17 per share and a revenue of $3.36 billion, demonstrating changes of +6.36% and +27.41%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for On Holding. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 7.14% rise in the Zacks Consensus EPS estimate. On Holding presently features a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that On Holding has a Forward P/E ratio of 39.59 right now. This indicates a premium in contrast to its industry's Forward P/E of 14.69.

It is also worth noting that ONON currently has a PEG ratio of 1.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.29.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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