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In the latest trading session, On Holding (ONON) closed at $48.75, marking a +0.64% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.5%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 1.21%.
Coming into today, shares of the running-shoe and apparel company had lost 19.47% in the past month. In that same time, the Retail-Wholesale sector gained 1.04%, while the S&P 500 lost 0.47%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company plans to announce its earnings on March 4, 2025. The company's earnings per share (EPS) are projected to be $0.20, reflecting a 433.33% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $666.44 million, indicating a 32.05% upward movement from the same quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. On Holding is currently a Zacks Rank #2 (Buy).
In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 42.77. This indicates a premium in contrast to its industry's Forward P/E of 14.77.
We can additionally observe that ONON currently boasts a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.09.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.