On Holding (ONON) closed the most recent trading day at $49.12, moving -2.98% from the previous trading session. This change lagged the S&P 500's 0.65% gain on the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
Shares of the running-shoe and apparel company witnessed a gain of 2.28% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.29%, and outperforming the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of On Holding in its upcoming release. On that day, On Holding is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 31.58%. In the meantime, our current consensus estimate forecasts the revenue to be $894.52 million, indicating a 29.41% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.96 per share and a revenue of $3.72 billion, signifying shifts of -12.73% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for On Holding. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. On Holding currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, On Holding is currently exchanging hands at a Forward P/E ratio of 29.69. This signifies a premium in comparison to the average Forward P/E of 20.84 for its industry.
Investors should also note that ONON has a PEG ratio of 1.26 right now. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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