On Holding (ONON) ended the recent trading session at $42.47, demonstrating a -3.3% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.44%.
Coming into today, shares of the running-shoe and apparel company had lost 1.5% in the past month. In that same time, the Retail-Wholesale sector gained 0.65%, while the S&P 500 gained 2.72%.
Analysts and investors alike will be keeping a close eye on the performance of On Holding in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 100% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $941.57 million, showing a 28.16% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.74 per share and revenue of $3.67 billion, which would represent changes of -32.73% and +39.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 14.55% lower within the past month. Right now, On Holding possesses a Zacks Rank of #3 (Hold).
In the context of valuation, On Holding is at present trading with a Forward P/E ratio of 59.35. This signifies a premium in comparison to the average Forward P/E of 17.55 for its industry.
It is also worth noting that ONON currently has a PEG ratio of 2.93. 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. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 2.27.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 38% of all 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.
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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