On Holding (ONON) closed at $35.06 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.61%.
Coming into today, shares of the running-shoe and apparel company had gained 15.8% in the past month. In that same time, the Consumer Discretionary sector gained 3.43%, while the S&P 500 gained 4.86%.
Investors will be hoping for strength from On Holding as it approaches its next earnings release. On that day, On Holding is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 20%. Our most recent consensus estimate is calling for quarterly revenue of $464.84 million, up 53.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $1.99 billion, which would represent changes of +103.45% and +55.6%, respectively, from the prior year.
Any recent changes to analyst estimates for On Holding should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.29% higher within the past month. On Holding is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that On Holding has a Forward P/E ratio of 59.92 right now. This represents a premium compared to its industry's average Forward P/E of 13.24.
Also, we should mention that ONON has a PEG ratio of 1.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Products industry currently had an average PEG ratio of 1.54 as of yesterday's close.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 14% of all 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.
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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