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On Holding (ONON) Increases Despite Market Slip: Here's What You Need to Know

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The most recent trading session ended with On Holding (ONON - Free Report) standing at $49.67, reflecting a +0.93% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.04%.

Shares of the running-shoe and apparel company have appreciated by 7.68% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.63% and the S&P 500's gain of 1.25%.

Analysts and investors alike will be keeping a close eye on the performance of On Holding in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 18.18% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $719.68 million, showing a 32.33% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.03 per share and revenue of $2.65 billion, which would represent changes of +164.1% and +32.91%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for On Holding. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.87% downward. On Holding presently features a Zacks Rank of #3 (Hold).

In the context of valuation, On Holding is at present trading with a Forward P/E ratio of 47.98. This valuation marks a premium compared to its industry's average Forward P/E of 18.23.

Also, we should mention that ONON has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 30% of over 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.

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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