In the latest close session, On Holding (ONON) was down 3.94% at $44.13. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 1.43%.
Prior to today's trading, shares of the running-shoe and apparel company had lost 6.24% lagged the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
Investors will be eagerly watching for the performance of On Holding in its upcoming earnings disclosure. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $896.42 million, up 29.68% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.94 per share and a revenue of $3.73 billion, representing changes of -14.55% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for On Holding. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about 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, 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 a 0.02% rise in the Zacks Consensus EPS estimate. Currently, On Holding is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, On Holding is holding a Forward P/E ratio of 26.8. Its industry sports an average Forward P/E of 16.89, so one might conclude that On Holding is trading at a premium comparatively.
It is also worth noting that ONON currently has a PEG ratio of 1.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 19% 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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