In the latest close session, On Holding (ONON) was up +2% at $44.34. The stock's change was more than the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.9%.
The running-shoe and apparel company's stock has dropped by 11.5% in the past month, falling short of the Retail-Wholesale sector's loss of 1.03% and the S&P 500's loss of 0.16%.
Investors will be eagerly watching for the performance of On Holding in its upcoming earnings disclosure. 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%. Our most recent consensus estimate is calling for quarterly revenue of $896.42 million, up 29.68% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $3.73 billion, indicating changes of -14.55% and +41.37%, respectively, from the former 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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. On Holding is currently a Zacks Rank #1 (Strong Buy).
In the context of valuation, On Holding is at present trading with a Forward P/E ratio of 25.36. This signifies a premium in comparison to the average Forward P/E of 17.25 for its industry.
One should further note that ONON currently holds a PEG ratio of 1.08. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 2 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 44, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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