On Holding (ONON) closed the most recent trading day at $37.24, moving -1.09% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.89%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 1.29%.
Heading into today, shares of the running-shoe and apparel company had gained 3.98% over the past month, outpacing the Retail-Wholesale sector's gain of 1.33% and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of On Holding in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.43, showcasing a 490.91% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 23.17% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $4.51 billion. These totals would mark changes of +82.47% and +23.9%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.75% increase. On Holding presently features a Zacks Rank of #3 (Hold).
Looking at valuation, On Holding is presently trading at a Forward P/E ratio of 21.33. Its industry sports an average Forward P/E of 16.53, so one might conclude that On Holding is trading at a premium comparatively.
Investors should also note that ONON has a PEG ratio of 0.6 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.23 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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).