On Holding (ONON) ended the recent trading session at $50.76, demonstrating a +1.62% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%.
Coming into today, shares of the running-shoe and apparel company had lost 3.18% in the past month. In that same time, the Retail-Wholesale sector gained 4.05%, while the S&P 500 gained 4.61%.
The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.24, marking a 50% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $843.95 million, showing a 34.46% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.12 per share and a revenue of $3.5 billion, demonstrating changes of +1.82% and +32.75%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 1.37% increase. On Holding is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 44.8. This indicates a premium in contrast to its industry's Forward P/E of 17.54.
Investors should also note that ONON has a PEG ratio of 2.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.97.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 15% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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