On Holding (ONON) closed the most recent trading day at $36.77, moving +1.07% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.
The stock of running-shoe and apparel company has fallen by 4.26% in the past month, lagging the Retail-Wholesale sector’s gain of 0.24% and the S&P 500’s gain of 1.13%.
Market participants will be closely following the financial results of On Holding in its upcoming release. The company is expected to report EPS of $0.44, up 500% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.12 billion, showing a 23.83% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.77 per share and a revenue of $4.53 billion, demonstrating changes of +82.47% and +24.42%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for On Holding. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.83% higher within the past month. On Holding is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, On Holding is presently being traded at a Forward P/E ratio of 20.51. This expresses a premium compared to the average Forward P/E of 16.12 of its industry.
Meanwhile, ONON’s PEG ratio is currently 0.57. 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 was holding an average PEG ratio of 1.18 at yesterday’s closing price.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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