Zacks Equity Research
3 min read
On Holding (ONON) closed the most recent trading day at $30.16, moving +2.62% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. Meanwhile, the Dow experienced a drop of 0.68%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
Shares of the running-shoe and apparel company have appreciated by 1.94% over the course of the past month, outperforming the Retail-Wholesale sector’s loss of 3.45%, and the S&P 500’s gain of 1.26%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company is predicted to post an EPS of $0.47, indicating a 6% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.16 billion, indicating a 16.51% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.72 per share and a revenue of $4.32 billion, signifying shifts of +77.32% and +18.7%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for On Holding. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.16% higher within the past month. As of now, On Holding holds a Zacks Rank of #5 (Strong Sell).
Investors should also note On Holding’s current valuation metrics, including its Forward P/E ratio of 17.09. This denotes a premium relative to the industry average Forward P/E of 14.21.
We can additionally observe that ONON currently boasts a PEG ratio of 0.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Retail – Apparel and Shoes was holding an average PEG ratio of 1.17 at yesterday’s closing price.
