On Holding (ONON) Stock Sinks As Market Gains: What You Should Know

On Holding (ONON) ended the recent trading session at $35.16, demonstrating a -11.19% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq increased by 0.77%.

Shares of the running-shoe and apparel company witnessed a loss of 15.39% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.96%, and the S&P 500's loss of 4.71%.

Market participants will be closely following the financial results of On Holding in its upcoming release. The company is forecasted to report an EPS of $0.36, showcasing a 56.52% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 31.76% from the prior-year quarter.

ONON's full-year Zacks Consensus Estimates are calling for earnings of $1.67 per share and revenue of $4.53 billion. These results would represent year-over-year changes of +72.16% and +24.54%, respectively.

Investors should also note any recent changes to analyst estimates for On Holding. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 past month, the Zacks Consensus EPS estimate has shifted 1.53% downward. On Holding is currently a Zacks Rank #3 (Hold).

Looking at valuation, On Holding is presently trading at a Forward P/E ratio of 23.71. This indicates a premium in contrast to its industry's Forward P/E of 15.26.

It's also important to note that ONON currently trades at a PEG ratio of 0.66. 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. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.32.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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