On Holding (ONON) ended the recent trading session at $43.84, demonstrating a +1.91% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq lost 0.33%.
The running-shoe and apparel company's stock has dropped by 4.46% in the past month, falling short of the Retail-Wholesale sector's gain of 2.91% and the S&P 500's gain of 2.57%.
The upcoming earnings release of On Holding will be of great interest to investors. The company's upcoming EPS is projected at $0.34, signifying a 100.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $941.57 million, indicating a 28.16% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.74 per share and a revenue of $3.67 billion, indicating changes of -32.73% and +39.47%, respectively, from the former year.
Any recent changes to analyst estimates for On Holding should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 14.55% downward. On Holding currently has a Zacks Rank of #3 (Hold).
Investors should also note On Holding's current valuation metrics, including its Forward P/E ratio of 58.13. Its industry sports an average Forward P/E of 19.64, so one might conclude that On Holding is trading at a premium comparatively.
We can also see that ONON currently has a PEG ratio of 2.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 2.22.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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