On Holding (ONON) closed at $34.57 in the latest trading session, marking a -2.92% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.89%.
The running-shoe and apparel company's shares have seen an increase of 7.81% over the last month, not keeping up with the Retail-Wholesale sector's gain of 11.67% and the S&P 500's gain of 10.54%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company plans to announce its earnings on May 12, 2026. The company's upcoming EPS is projected at $0.35, signifying a 52.17% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.05 billion, indicating a 29.91% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $4.52 billion, representing changes of +69.07% and +24.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for On Holding. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. On Holding presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, On Holding is holding a Forward P/E ratio of 21.66. This signifies a premium in comparison to the average Forward P/E of 16.3 for its industry.
One should further note that ONON currently holds a PEG ratio of 0.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).