On Holding (ONON) closed at $52.60 in the latest trading session, marking a -3.24% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
Prior to today's trading, shares of the running-shoe and apparel company had lost 3.72% lagged the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company is expected to report EPS of $0.24, up 50% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $836.96 million, showing a 33.35% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.12 per share and a revenue of $3.46 billion, representing changes of +1.82% and +31.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for On Holding. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% higher. As of now, On Holding holds a Zacks Rank of #3 (Hold).
Looking at valuation, On Holding is presently trading at a Forward P/E ratio of 48.37. This expresses a premium compared to the average Forward P/E of 17.48 of its industry.
One should further note that ONON currently holds a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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