On Holding (ONON) ended the recent trading session at $52.88, demonstrating a -1.08% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.32%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.26%.
The stock of running-shoe and apparel company has risen by 2.65% in the past month, lagging the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. The company's upcoming EPS is projected at $0.24, signifying a 50.00% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $838.51 million, up 33.59% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.13 per share and a revenue of $3.48 billion, representing changes of +2.73% and +32%, respectively, from the prior year.
It is also important to note the 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.56% increase. On Holding is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, On Holding is presently being traded at a Forward P/E ratio of 47.42. For comparison, its industry has an average Forward P/E of 17.71, which means On Holding is trading at a premium to the group.
It is also worth noting that ONON currently has a PEG ratio of 2.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ONON's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 22% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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On Holding AG (ONON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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