On Holding (ONON) Stock Price Predicted to Rise 25.2% by Wall Street Analysts

On Holding (ONON) has a potential upside of 25.2% according to Wall Street analysts' mean estimate of $64.64. The lowest estimate is $50.00, while the most optimistic analyst expects the stock to surge 45.2% to reach $75.00. A strong agreement among analysts about the company's ability to report better earnings strengthens this view. However, empirical research shows that price targets rarely indicate a stock's actual direction.

On Holding (ONON) has recently attracted attention from Wall Street analysts, with a potential upside of 25.2% according to their mean estimate of $64.64. The range of analyst estimates varies, with the lowest prediction at $50.00 and the most optimistic estimate at $75.00, a 45.2% increase [1]. This strong agreement among analysts suggests a bullish outlook on the company's ability to report better earnings.

However, it is essential to approach these estimates with caution. Empirical research has shown that price targets often do not align with a stock's actual direction. Analysts, who are employed by brokerage firms, tend to have a strong positive bias in their recommendations due to their vested interest in the stocks they cover [1]. This bias can lead to overoptimistic estimates that may not reflect the stock's true potential.

To gain a more objective perspective, investors can use tools like the Zacks Rank, a quantitative model that incorporates earnings estimate revisions to predict near-term stock price movements. On Holding is currently ranked #2 (Buy) by Zacks, indicating a positive outlook based on recent revisions in earnings estimates [1, 2].

Valuation metrics also provide insight into On Holding's potential. The stock is trading at a Forward P/E ratio of 47.19, which is higher than the industry average of 17.74. Additionally, the PEG ratio is 2.29, indicating that the stock's expected earnings growth rate is relatively high compared to the industry average of 2.04 [2]. These valuation metrics suggest that investors may be paying a premium for On Holding's expected growth.

In conclusion, while Wall Street analysts' estimates suggest a potential upside for On Holding, investors should consider these estimates alongside other valuation metrics and tools like the Zacks Rank. By doing so, they can make more informed investment decisions.

References:
[1] https://finance.yahoo.com/news/worth-investing-holding-onon-based-133003128.html
[2] https://www.nasdaq.com/articles/holding-onon-stock-sinks-market-gains-heres-why