In the latest close session, On Holding (ONON) was down 1.39% at $35.43. The stock's change was less than the S&P 500's daily loss of 0.49%. Meanwhile, the Dow experienced a drop of 0.05%, and the technology-dominated Nasdaq saw a decrease of 0.9%.
The stock of running-shoe and apparel company has risen by 12.7% in the past month, lagging the Retail-Wholesale sector's gain of 13.56% and the S&P 500's gain of 12.8%.
The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. On that day, On Holding is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 52.17%. 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.
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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. At present, On Holding boasts a Zacks Rank of #3 (Hold).
Investors should also note On Holding's current valuation metrics, including its Forward P/E ratio of 21.85. This indicates a premium in contrast to its industry's Forward P/E of 16.47.
We can additionally observe that ONON currently boasts a PEG ratio of 0.61. 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 currently had an average PEG ratio of 1.51 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ONON in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
