On Holding AG Surges 4.44% on Q2 Revenue Boost but Ranks 412th in $270M Trading Volume Amid Analyst Divergence

On August 22, 2025, On Holding AG (ONON) closed up 4.44% at $44.56, with a trading volume of $270 million, ranking 412th in daily trading activity. Recent developments suggest mixed sentiment among analysts and investors.

The stock rebounded from a Q2 correction as the company reported record revenue, driven by strategic price increases and strong demand for its performance running and tennis footwear. Analysts highlighted a 31% revenue growth in the second quarter, offsetting tariff costs and macroeconomic challenges. However, Jefferies downgraded the stock to "Underperform," citing slowing growth and intensified competition from Nike in the running shoe market.

Positive momentum was fueled by collaborations with high-profile partners like Zendaya and LOEWE, which boosted apparel sales by 75.5% year-on-year. This surge in brand visibility, particularly among Gen Z consumers, underscored On's ability to strengthen its market position. Meanwhile, Bernstein and SocGen reiterated "Outperform" ratings, while BTIG reaffirmed a "Buy" recommendation following the strong earnings report.

Short interest in ONON decreased by 10.98% month-on-month, signaling improving investor confidence. However, the stock's elevated P/E ratio of 99.02 and PEG ratio of 2.48 suggest potential overvaluation concerns compared to sector peers.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day yielded a total profit of $2,253.88 from December 2022 to August 2025, with a Sharpe ratio of 1.79, indicating solid risk-adjusted returns despite a maximum drawdown of -$1,025.71.