On Holding (ONON) Ascends While Market Falls: Some Facts to Note

In the latest trading session, On Holding (ONON) closed at $38.19, marking a +1.54% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.83%.

Coming into today, shares of the running-shoe and apparel company had gained 2.7% in the past month. In that same time, the Retail-Wholesale sector gained 7.52%, while the S&P 500 gained 3.52%.

The investment community will be paying close attention to the earnings performance of On Holding in its upcoming release. The company is slated to reveal its earnings on August 11, 2026. The company is forecasted to report an EPS of $0.43, showcasing a 490.91% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.11 billion, indicating a 22.61% growth compared to the corresponding quarter of the prior year.

ONON's full-year Zacks Consensus Estimates are calling for earnings of $1.76 per share and revenue of $4.5 billion. These results would represent year-over-year changes of +81.44% and +23.57%, respectively.

It is also important to note the recent changes to analyst estimates for On Holding. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.57% fall in the Zacks Consensus EPS estimate. On Holding presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, On Holding is holding a Forward P/E ratio of 21.39. For comparison, its industry has an average Forward P/E of 17.56, which means On Holding is trading at a premium to the group.

Investors should also note that ONON has a PEG ratio of 0.6 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 98, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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