On Holding: IBD Stock Of The Day, In Buy Zone At Record Highs

On Holding AG (ONON) has been making waves in the sportswear industry, and its stock has been on a tear, making it the IBD Stock of the Day. With a strong buy rating from analysts and a 12-month price target of $57.04, which is a decrease of -5.59% from the latest price, investors are eager to know what's driving this momentum. Let's dive into the key factors contributing to On Holding's success and why it's in the buy zone at record highs.

1. Direct-to-Consumer Strategy: On Holding's direct-to-consumer (DTC) strategy has been a significant driver of its revenue growth and profitability. By selling directly to customers, the company has been able to maintain a high gross profit margin of 60.18% and a net profit margin of 5.84%. This strategy has also allowed On Holding to build brand awareness and foster customer loyalty, contributing to its overall growth.
2. Strategic Acquisitions and Partnerships: On Holding's strategic acquisitions and partnerships, such as its collaboration with tennis legend Roger Federer, have played a crucial role in its expansion and brand recognition. These partnerships have helped On Holding create innovative and high-quality products that appeal to a broader range of customers, leading to increased sales and market share.
3. Strong Financial Performance: On Holding's financial performance has been impressive, with revenue growth of 46.64% and earnings growth of 37.95% in 2023. The company's ability to control costs and maintain profitability has been evident in its increasing gross profit margin and net profit margin.
4. Analyst Ratings and Price Targets: According to 25 analysts, the average rating for ONON stock is "Strong Buy," with a 12-month stock price forecast of $57.04. These ratings and price targets reflect the market's optimism about On Holding's future performance and growth prospects.



In conclusion, On Holding's direct-to-consumer strategy, strategic acquisitions and partnerships, strong financial performance, and positive analyst ratings have all contributed to its success and made it the IBD Stock of the Day. With the stock in the buy zone at record highs, investors should consider adding ONON to their portfolios to capitalize on the company's growth potential. However, as with any investment, it's essential to conduct thorough research and consider your risk tolerance before making a decision.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long ONON.