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On Holding (ONON) Outperforms Broader Market: What You Need to Know

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In the latest close session, On Holding (ONON - Free Report) was up +2.85% at $53.70. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%.

Coming into today, shares of the running-shoe and apparel company had lost 10.8% in the past month. In that same time, the Retail-Wholesale sector gained 3.33%, while the S&P 500 gained 5.13%.

Market participants will be closely following the financial results of On Holding in its upcoming release. On that day, On Holding is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 50%. Meanwhile, the latest consensus estimate predicts the revenue to be $836.96 million, indicating a 33.35% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $3.46 billion. These totals would mark changes of +1.82% and +31.3%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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, the Zacks Consensus EPS estimate has moved 0.98% higher. On Holding currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, On Holding is holding a Forward P/E ratio of 46.46. This valuation marks a premium compared to its industry average Forward P/E of 17.41.

We can additionally observe that ONON currently boasts a PEG ratio of 2.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.83 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 21% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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