On Holding

On Holding

ONON

$ 50.61

$3.02 6.35% 84%

IBD Stock Analysis

• Rebound breaks above downtrend, providing an early entry at 50.65.

Composite Rating

94/99

Industry Group Ranking

144/197

Emerging Pattern

Pullback

Pullback

A stock may pull back after a breakout, often to the 50-day line. A rebound from the first or second visit to the 50-day can be a buying opportunity, especially for existing holders to add some shares.

* Not real-time data. All data shown was captured at 12:28PM EDT on 10/25/2024.

On Holding (ONON) is Friday's IBD Stock Of The Day, as the fast-growing athletic apparel company offered a buying opportunity after rebounding off a key support level and punching through a downtrend.

Founded in 2010, the Swiss company behind the popular On Running shoes decided to expand globally at a measured pace, entering Germany in 2011, then the U.S. and Japan in 2013. The company moved into China and Brazil in 2018. Now, On Holding also has high-profile partnerships — including such notables as Roger Federer and Zendaya.

The footwear and apparel maker went public with a stock price of 24 in September 2021. It currently trades 110% above that price, and just below its record high from November 2021.

On Aug. 13, On Holding reported second-quarter earnings of 16 cents a share, just short of FactSet views for 19 cents. Revenue leapt 29% to a record $653.8 million, ending a string of five quarters of decelerating sales growth.

The company also maintained its full-year forecast for at least 30% net sales growth on a constant currency basis. That implies net sales of about $2.65 billion.

Meanwhile, the consensus view has Q3 profit at 22 cent per share, running flat compared to a year ago, while sales are expected to grow 32% to $711 million. Analysts project On Holding to report third-quarter financials in November.

For the full year, analysts see earnings surging 147% to 99 cents a share, according to FactSet. Looking ahead, predictions have earnings of $2.51 per share by 2028, a 527% jump from 2023 levels.

On Holding is challenging athletic footwear and apparel stalwarts like Nike (NKE), Adidas (ADDYY), Hoka-parent Deckers Outdoor (DECK) and others.

ONON Stock Performance

On Holding stock surged 6.3% to 50.62 during market trade on Friday, breaking a downtrend and bouncing off the 10-week moving average, according to MarketSurge chart analysis.

SwingTrader started shares with a 3/4 position as they broke above a downtrend, entering a buy zone at 50.65. The buy zone extends from 50.60-51.61, according to SwingTrader analysis.

ONON has surged 90% in 2024 and appears to be closing in on its all-time high of 55.87, which it hit in 2021.

Meanwhile, the 11 stocks in the IBD-tracked apparel-shoes industry group have collectively gained more than 23% in 2024. Other footwear stocks showing signs of strength include Deckers Outdoor, Crocs (CROX) and Skechers (SKX).

Deckers stock surged 11% to 168.96 on Friday, also breaking a downtrend, while Crocs stock advanced 3.2% Friday. Skechers stock declined 2.3%.

ON Holding stock has a strong 94 Composite Rating out of a best-possible 99. ONON stock also has a 95 Relative Strength Rating and an 81 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.

YOU MAY ALSO LIKE:

Is Tesla Stock A Buy Or A Sell?

Get Full Access To IBD Stock Lists And Ratings

Learning How To Pick Great Stocks? Read Investor's Corner

AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.