On Holding AG (ONON) Shares Soar 13.00% on Strong Q1 Earnings

On Holding AG (ONON) shares surged 13.00% intraday, reaching their highest level since February 2025, marking a significant two-day rally with a total gain of 16.11%.

The strategy of buying ONON shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This result indicates the effectiveness of this approach, although the returns are not significantly high. The recent rise in the stock price and the positive outlook from analysts suggest that ONON could continue its upward trend, making this strategy a viable option for investors looking for steady gains.

On Holding AG's stock price has been on a strong upward trajectory, driven by several key factors. The company exceeded Q1 revenue expectations and raised its full-year sales outlook, indicating robust demand for its products. This positive performance has directly impacted stock valuation, contributing to the recent surge.

Analysts have also shown optimism towards On Holding AG. BTIG and Williams Trading both raised their price targets for the company, with BTIG setting it at $70 and Williams Trading at $63, while maintaining a "Buy" rating. These adjustments reflect continued confidence in the company's future prospects, further boosting stock performance.

On Holding reported a 43% top-line growth, demonstrating strong demand for its high-end running shoes and athletic apparel. This significant growth has enhanced investor confidence and driven stock value. Additionally, the company reported strong net sales growth and profitability metrics, including a gross profit margin of 60.6% and an adjusted EBITDA margin of 16.7%, further boosting investor sentiment.

On Holding's strategic expansion efforts have also contributed to its stock price movement. The company has successfully increased its direct-to-consumer (D2C) share and launched new retail stores in iconic locations, enhancing brand awareness and regional presence. These initiatives support long-term growth and positively impact stock prices.