In the latest close session, On Holding (ONON) was up +1.98% at $38.20. The stock's change was more than the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the running-shoe and apparel company had lost 0.69% over the past month, lagging the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of On Holding in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 490.91% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 23.17% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.77 per share and revenue of $4.51 billion, indicating changes of +82.47% and +23.9%, respectively, compared to the previous 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.75% higher. On Holding presently features a Zacks Rank of #3 (Hold).
In the context of valuation, On Holding is at present trading with a Forward P/E ratio of 21.22. For comparison, its industry has an average Forward P/E of 15.67, which means On Holding is trading at a premium to the group.
Investors should also note that ONON has a PEG ratio of 0.59 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.24.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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On Holding AG (ONON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).