In the latest trading session, On Holding (ONON) closed at $43.23, marking a +2.27% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.89%.
The running-shoe and apparel company's stock has dropped by 7.63% in the past month, falling short of the Retail-Wholesale sector's loss of 3.04% and the S&P 500's gain of 0.16%.
The upcoming earnings release of On Holding will be of great interest to investors. In that report, analysts expect On Holding to post earnings of $0.34 per share. This would mark year-over-year growth of 100%. In the meantime, our current consensus estimate forecasts the revenue to be $946.41 million, indicating a 28.82% growth compared to the corresponding quarter of the prior year.
ONON's full-year Zacks Consensus Estimates are calling for earnings of $0.76 per share and revenue of $3.68 billion. These results would represent year-over-year changes of -30.91% and +39.61%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained unchanged. As of now, On Holding holds a Zacks Rank of #3 (Hold).
In terms of valuation, On Holding is presently being traded at a Forward P/E ratio of 55.51. This represents a premium compared to its industry average Forward P/E of 16.48.
Also, we should mention that ONON has a PEG ratio of 2.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 2.42.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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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