In the latest trading session, On Holding (ONON) closed at $42.97, marking a +2.65% move from the previous day. This move outpaced the S&P 500’s daily gain of 1.56%. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
Heading into today, shares of the running-shoe and apparel company had lost 2.4% over the past month, outpacing the Retail-Wholesale sector’s loss of 5.02% and lagging the S&P 500’s gain of 0.41%.
The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. In that report, analysts expect On Holding to post earnings of $0.34 per share. This would mark year-over-year growth of 100%. In the meantime, our current consensus estimate forecasts the revenue to be $937.03 million, indicating a 27.54% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.76 per share and a revenue of $3.68 billion, signifying shifts of -30.91% and +39.61%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate has remained steady. On Holding is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 54.98. This signifies a premium in comparison to the average Forward P/E of 16.38 for its industry.
Meanwhile, ONON’s PEG ratio is currently 2.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Retail – Apparel and Shoes industry had an average PEG ratio of 2.15 as trading concluded yesterday.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.
