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On Holding (ONON) Stock Dips While Market Gains: Key Facts

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On Holding (ONON - Free Report) closed at $38.60 in the latest trading session, marking a -0.41% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.49%.

The running-shoe and apparel company's stock has dropped by 7.32% in the past month, falling short of the Consumer Discretionary sector's gain of 2.11% and the S&P 500's gain of 3.22%.

Investors will be eagerly watching for the performance of On Holding in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.19, signifying a 375% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $623.08 million, indicating a 26.08% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.95 per share and a revenue of $2.56 billion, representing changes of +143.59% and +28.35%, respectively, from the prior year.

Any recent changes to analyst estimates for On Holding should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. As of now, On Holding holds a Zacks Rank of #3 (Hold).

From a valuation perspective, On Holding is currently exchanging hands at a Forward P/E ratio of 40.8. This indicates a premium in contrast to its industry's Forward P/E of 15.91.

Investors should also note that ONON has a PEG ratio of 0.93 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. The Leisure and Recreation Products industry currently had an average PEG ratio of 1.1 as of yesterday's close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 20% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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