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Why On Holding (ONON) Dipped More Than Broader Market Today

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On Holding (ONON - Free Report) closed at $45.16 in the latest trading session, marking a -3.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq increased by 0.35%.

Prior to today's trading, shares of the running-shoe and apparel company had lost 13.51% lagged the Retail-Wholesale sector's gain of 1.16% and the S&P 500's gain of 1.21%.

The upcoming earnings release of On Holding will be of great interest to investors. The company's earnings report is expected on August 12, 2025. The company is forecasted to report an EPS of $0.24, showcasing a 50% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $845.21 million, reflecting a 34.66% rise from the equivalent quarter last year.

ONON's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $3.51 billion. These results would represent year-over-year changes of +1.82% and +33.23%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.73% lower. Right now, On Holding possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that On Holding has a Forward P/E ratio of 41.98 right now. This denotes a premium relative to the industry average Forward P/E of 17.28.

We can also see that ONON currently has a PEG ratio of 2.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.87 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 22% of all 250+ industries.

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

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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