On Holding (ONON) closed at $52.67 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.
Shares of the running-shoe and apparel company witnessed a loss of 11.82% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.39%, and the S&P 500's gain of 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of On Holding in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.26, signifying a 62.50% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $833.2 million, indicating a 32.75% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.15 per share and revenue of $3.44 billion, indicating changes of +4.55% and +30.65%, respectively, compared to the previous year.
Any recent changes to analyst estimates for On Holding should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. On Holding is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that On Holding has a Forward P/E ratio of 45.2 right now. This represents a premium compared to its industry average Forward P/E of 16.68.
We can additionally observe that ONON currently boasts a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ONON's industry had an average PEG ratio of 1.92 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 186, putting it in the bottom 25% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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