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Strength Seen in On Holding (ONON): Can Its 6.8% Jump Turn into More Strength?

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On Holding (ONON - Free Report) shares rallied 6.8% in the last trading session to close at $32.01. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.1% gain over the past four weeks.

On Holding’s rally is buoyed by optimism regarding the company’s pent-up demand, strong product innovation pipeline and strength in its D2C business. The company has been gaining momentum across both E-com and own retail. Investors are optimistic about the company's prospects courtesy of the effective integration of celebrity athletes into product innovation and strategic adjustments in marketing expenditures.

This running-shoe and apparel company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +450%. Revenues are expected to be $508.48 million, up 33.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For On Holding, the consensus EPS estimate for the quarter has been revised 4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ONON going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

On Holding belongs to the Zacks Leisure and Recreation Products industry. Another stock from the same industry, Academy Sports and Outdoors, Inc. (ASO - Free Report) , closed the last trading session 0.3% lower at $67.78. Over the past month, ASO has returned 6.9%.

For Academy Sports and Outdoors, Inc., the consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $2.31. This represents a change of +13.2% from what the company reported a year ago. Academy Sports and Outdoors, Inc. currently has a Zacks Rank of #3 (Hold).


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