On Holding (ONON) ended the recent trading session at $37.89, demonstrating a +2.24% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
Prior to today's trading, shares of the running-shoe and apparel company had gained 4.63% outpaced the Retail-Wholesale sector's gain of 0.85% and the S&P 500's gain of 1.7%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company's upcoming EPS is projected at $0.43, signifying a 490.91% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.11 billion, reflecting a 22.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $4.5 billion, which would represent changes of +81.44% and +23.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. The Zacks Consensus EPS estimate has moved 1.21% higher within the past month. On Holding is currently a Zacks Rank #3 (Hold).
In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 21.08. This indicates a premium in contrast to its industry's Forward P/E of 16.65.
Meanwhile, ONON's PEG ratio is currently 0.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.25.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).