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On Holding (ONON) Stock Slides as Market Rises: Facts to Know Before You Trade

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On Holding (ONON - Free Report) ended the recent trading session at $50.95, demonstrating a -1.55% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.71% for the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.

Shares of the running-shoe and apparel company have appreciated by 14.34% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 6.39% and the S&P 500's gain of 6.41%.

The investment community will be paying close attention to the earnings performance of On Holding in its upcoming release. The company's earnings per share (EPS) are projected to be $0.25, reflecting a 13.64% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $718.84 million, indicating a 32.18% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.02 per share and a revenue of $2.65 billion, representing changes of +161.54% and +32.94%, respectively, from the prior year.

Any recent changes to analyst estimates for On Holding should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 2.51% lower. Right now, On Holding possesses a Zacks Rank of #3 (Hold).

In the context of valuation, On Holding is at present trading with a Forward P/E ratio of 50.57. This represents a premium compared to its industry's average Forward P/E of 18.21.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 35% of all 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.

To follow ONON in the coming trading sessions, be sure to utilize Zacks.com.


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