On Holding (ONON) closed at $45.96 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the running-shoe and apparel company had gained 0.28% in the past month. In that same time, the Retail-Wholesale sector gained 4.8%, while the S&P 500 gained 0.6%.
The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. The company is forecasted to report an EPS of $0.26, showcasing a 31.58% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $896.42 million, reflecting a 29.68% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.96 per share and a revenue of $3.72 billion, indicating changes of -12.73% and 0%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for On Holding. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, On Holding possesses a Zacks Rank of #4 (Sell).
Investors should also note On Holding's current valuation metrics, including its Forward P/E ratio of 27.32. Its industry sports an average Forward P/E of 18.63, so one might conclude that On Holding is trading at a premium comparatively.
We can additionally observe that ONON currently boasts a PEG ratio of 1.16. 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 2.09 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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