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Here's Why On Holding (ONON) Fell More Than Broader Market

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On Holding (ONON - Free Report) ended the recent trading session at $43.92, demonstrating a -4.02% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow experienced a drop of 0.38%, and the technology-dominated Nasdaq saw a decrease of 0.5%.

Heading into today, shares of the running-shoe and apparel company had gained 1.28% over the past month, outpacing the Retail-Wholesale sector's gain of 0.66% and lagging the S&P 500's gain of 2.74%.

The investment community will be paying close attention to the earnings performance of On Holding in its upcoming release. The company is predicted to post an EPS of $0.34, indicating a 100% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $941.57 million, up 28.16% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.74 per share and a revenue of $3.67 billion, demonstrating changes of -32.73% and +39.47%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 14.55% lower. Currently, On Holding is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 61.84. For comparison, its industry has an average Forward P/E of 17.6, which means On Holding is trading at a premium to the group.

Meanwhile, ONON's PEG ratio is currently 3.05. 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 industry had an average PEG ratio of 2.32 as trading concluded yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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