In the latest trading session, On Holding (ONON) closed at $39.29, marking a -4.57% move from the previous day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.55%.
Shares of the running-shoe and apparel company have depreciated by 2.79% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.4%, and the S&P 500's gain of 3.83%.
Market participants will be closely following the financial results of On Holding in its upcoming release. It is anticipated that the company will report an EPS of $0.34, marking a 100% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $946.41 million, up 28.82% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.76 per share and a revenue of $3.68 billion, indicating changes of -30.91% and +39.61%, respectively, from the former year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. On Holding currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, On Holding is currently exchanging hands at a Forward P/E ratio of 54.07. This valuation marks a premium compared to its industry average Forward P/E of 16.84.
It's also important to note that ONON currently trades at a PEG ratio of 2.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 2.41 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
On Holding AG (ONON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
