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On Holding (ONON) Stock Moves -0.41%: What You Should Know

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On Holding (ONON - Free Report) closed at $31.61 in the latest trading session, marking a -0.41% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.

Shares of the running-shoe and apparel company have appreciated by 12.55% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.27% and the S&P 500's gain of 3.56%.

The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.11, reflecting a 450% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $508.48 million, up 33.51% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for On Holding. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, On Holding possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, On Holding is currently exchanging hands at a Forward P/E ratio of 39.92. This represents a premium compared to its industry's average Forward P/E of 13.89.

Investors should also note that ONON has a PEG ratio of 1.04 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. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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