On Holding (ONON) ended the recent trading session at $63.62, demonstrating a +0.92% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.25%.
The the stock of running-shoe and apparel company has risen by 15.1% in the past month, leading the Retail-Wholesale sector's gain of 5.57% and the S&P 500's gain of 1.24%.
Market participants will be closely following the financial results of On Holding in its upcoming release. It is anticipated that the company will report an EPS of $0.20, marking a 433.33% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $666.44 million, indicating a 32.05% growth compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.38% higher. At present, On Holding boasts a Zacks Rank of #2 (Buy).
Looking at valuation, On Holding is presently trading at a Forward P/E ratio of 55.73. This represents a premium compared to its industry's average Forward P/E of 16.07.
It is also worth noting that ONON currently has a PEG ratio of 0.97. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.56 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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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