On Holding (ONON) closed the most recent trading day at $34.41, moving -2.85% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
Prior to today's trading, shares of the running-shoe and apparel company had gained 20.52% outpaced the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.
Investors will be eagerly watching for the performance of On Holding in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.5, signifying steadiness compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 14.6% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.73 per share and revenue of $4.27 billion, indicating changes of +78.35% and +17.37%, respectively, compared to the previous year.
Any recent changes to analyst estimates for On Holding should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.12% increase. Right now, On Holding possesses a Zacks Rank of #3 (Hold).
In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 20.53. Its industry sports an average Forward P/E of 14.48, so one might conclude that On Holding is trading at a premium comparatively.
We can also see that ONON currently has a PEG ratio of 0.61. 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. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.25.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).