Core Insights - On Holding (ONON) closed at $42.57, with a daily increase of +1.12%, outperforming the S&P 500's gain of 0.37% [1] - The company experienced a monthly decline of 7.51%, underperforming the Retail-Wholesale sector and the S&P 500 [1] Earnings Projections - The upcoming earnings report is expected to show an EPS of $0.34, a 100% increase year-over-year [2] - Revenue is projected at $939.41 million, reflecting a 27.87% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, earnings are anticipated to be $0.74 per share, a decrease of -32.73% from last year, while revenue is expected to reach $3.67 billion, an increase of +39.45% [3] - Analysts' forecast revisions are crucial as they indicate confidence in the company's performance and profit potential [3] Valuation Metrics - On Holding has a Forward P/E ratio of 56.89, significantly higher than the industry average of 18.15 [6] - The company has a PEG ratio of 2.8, compared to the industry average PEG ratio of 2.44 [7] Industry Context - The Retail - Apparel and Shoes industry is ranked 86 in the Zacks Industry Rank, placing it in the top 35% of over 250 industries [8] - Strong industry rankings correlate with better performance, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Management Changes - Lenzing has extended the management board mandate of Christian Skilich until May 31, 2029 [1] - CFO Nico Reiner will not extend his mandate, which expires on December 31, 2025, with Mathias Breuer set to become the new CFO on January 1, 2026 [2] - Karl Mayer has appointed Lutz Wolf as its sole CEO, responsible for the entire group of companies [3] - Unspun has appointed Chris Blakeslee as its first independent board member, bringing extensive apparel industry experience [4][5] - On Holding's COO Sam Wenger will step down at the end of the year, with Scott Maguire taking on an expanded role [6] - Wax London has appointed Patrick Duggan as its new brand director, who previously worked with the company as a consultant [7]

Core Insights - On Holding AG (NYSE:ONON) is identified as one of the most oversold large-cap stocks in 2025, with a Buy rating maintained by UBS analyst Jay Sole and a price target set at $79.00 [1] - The stock has received multiple Buy ratings from analysts, including Morgan Stanley with a price target of $65.00 and Bernstein with a target of $70.00, indicating strong analyst consensus [2] - The median price target for On Holding AG is $40.96, suggesting a potential upside of 68.28% from current levels [2] Company Overview - On Holding AG specializes in the development and distribution of sports products, which include apparel, footwear, and accessories [3] - The company markets its products globally through various channels, including global distributors, independent retailers, an online presence, and its own stores [3]

Core Viewpoint - Analysts express optimism about certain stocks, suggesting potential for significant gains despite current high valuations in the market [1][2]. Group 1: Nebius Group - Nebius Group is a Netherlands-based AI hyperscaler operating large-scale GPU clusters for AI applications and developing autonomous vehicle technology [3]. - The stock has seen a remarkable increase, with its price more than quadrupling year to date, and analysts project a 34% upside potential over the next 12 months [4]. - In Q2 2025, Nebius Group's revenue more than doubled compared to the previous quarter, indicating strong demand for AI infrastructure [5]. Group 2: On Holding - On Holding is a rapidly growing athletic sportswear company with a presence in over 80 countries and has sold over 50 million products [6]. - Despite a year-to-date decline of over 20%, analysts predict a rebound, with an average 12-month price target suggesting a 55% increase from the current share price [7]. - The company reported a 32% year-over-year increase in net sales for Q2, reaching record highs, and expects at least 31% growth for the full year [7]. Group 3: The Trade Desk - The Trade Desk operates a leading technology platform for digital advertising, enabling targeted campaigns online and on streaming services [9]. - The stock has experienced a significant decline of almost 60% in 2025, but analysts foresee a recovery with a consensus price target indicating a 43% upside potential [10]. - In Q2, the company's revenue grew by 19% year over year, although this is a slowdown compared to the previous year's growth [11]. The company's strong customer retention rate of 95% and the growth potential in ad-supported connected TV contribute to the optimistic outlook [12].

Core Insights - Growth stocks are currently leading the market, with the S&P 500 up 14% and the Nasdaq-100 up 17% this year [2] - Three notable growth stocks to consider are Shopify, On, and Upstart [2] Group 1: Shopify - Shopify is a significant player in e-commerce, providing services rather than selling products directly to consumers [3] - The company holds over 12% market share in U.S. e-commerce, positioning itself as a competitor to Amazon [4] - E-commerce growth offers organic opportunities for Shopify, with international sales tripling since 2020 [5][6] - In Q2, Shopify's revenue grew 31% year-over-year, and operating income increased by 21% with a 9% margin [7] - Shopify's stock has risen 77% over the past year, indicating strong market confidence [7] Group 2: On - On is a rising brand in athletic wear with significant growth potential due to low brand penetration globally [8] - In Q2, total sales increased by 38% year-over-year, with apparel sales up 76% and accessories up 143% [9][10] - The company has doubled its brand penetration in the U.S. over the past year and maintains the highest gross margin in the industry at 61.5% [10] - On is expanding its product line and has engaged in successful collaborations, indicating a bright future [11] Group 3: Upstart - Upstart operates an AI-driven lending platform that assesses credit risk using extensive data, aiming to approve more loans without increasing risk [12] - The company reported over 100% revenue growth in Q2 and achieved its first net profit since 2022, with a GAAP net income of $5.6 million [13] - Upstart's stock is currently trading at a price-to-sales ratio of 6 and a forward P/E ratio of 23, suggesting an attractive valuation [13] - The company is better positioned now to navigate economic challenges and is launching more products for growth opportunities [14]

Group 1 - On Holding's COO, Sam Wenger, will step down at the end of the year after eight years in the role [1] - Scott Maguire, currently the chief innovation officer, will take on the expanded role of chief innovation and operations officer starting January 1, 2026 [1] - Wenger will remain with the company until the end of the first quarter of 2026 [1] Group 2 - Maguire joined On in 2025 and previously served as CEO of Specialized Bicycle Components and Group COO at Dyson [2] - On Holding has been gaining market share in the U.S. from competitors like Adidas and Nike by targeting younger customers through collaborations and product innovations [2] - The company raised its annual sales forecast in August [2]

Core Viewpoint - The comparison between Ermenegildo Zegna N.V. (ZGN) and On Holding (ONON) indicates that ZGN presents a better value opportunity for investors in the Retail - Apparel and Shoes sector [1]. Valuation Metrics - ZGN has a forward P/E ratio of 21.43, significantly lower than ONON's forward P/E of 61.84 [5]. - The PEG ratio for ZGN is 2.20, while ONON's PEG ratio stands at 3.05, suggesting ZGN is more reasonably priced relative to its expected earnings growth [5]. - ZGN's P/B ratio is 3.58, compared to ONON's P/B of 17.01, indicating ZGN is valued more favorably against its book value [6]. Earnings Estimates - ZGN currently holds a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions, while ONON has a Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for ZGN suggests an improving earnings outlook compared to ONON [7]. Value Grades - ZGN has been assigned a Value grade of B, whereas ONON has received a Value grade of F, highlighting ZGN's superior valuation metrics [6].

Core Viewpoint - UBS has released a list of preferred stocks in the consumer sector, selecting seven stocks with differentiated investment value based on unique data sources. Group 1: Recommended Stocks - **PepsiCo (PEP.US)** is expected to show significant improvement potential over the next 12 to 18 months, with a projected high single-digit growth in earnings per share for the full year of 2026, making its risk-reward ratio highly attractive among the recommended stocks [1]. - **J.M. Smucker (SJM.US)** is forecasted to achieve an organic growth rate of 5.6%, slightly above the market expectation of 5.5%, driven by strong pricing power in its coffee segment and cost-saving measures [1]. - **Albertsons (ACI.US)** is viewed as having excessive stock price correction, with its pharmacy business achieving double-digit growth for 15 consecutive quarters, indicating strong customer lifetime value [2]. - **Dutch Bros (BROS.US)** is expected to continue its upward trajectory, supported by leading store expansion and sales growth momentum projected to last until mid-2026 [2][3]. - **Ulta Beauty (ULTA.US)** is showing strong execution under new leadership, with improved operational efficiency and a favorable competitive environment, which is expected to support its growth momentum [3]. - **On Running (ONON.US)** is focusing on product innovation and maintaining a premium brand position, which is anticipated to lead to industry-leading sales growth and profit margin improvements [3]. - **Peloton (PTON.US)** is rated as a "buy" with a target price of $11, supported by revenue growth and cost optimization, alongside a positive trend in core metrics [4].

Group 1: Consumer Sector Recommendations - UBS has released a list of preferred stocks in the consumer sector, identifying seven stocks with differentiated investment value [1] - PepsiCo (PEP.US) is expected to show significant improvement potential over the next 12 to 18 months, with a projected high single-digit growth in earnings per share for 2026 [1] - J.M. Smucker (SJM.US) is forecasted to achieve an organic growth rate of 5.6%, supported by strong pricing power in its coffee segment, which is above the market expectation of 5.5% [1] - Albertsons (ACI.US) has seen its stock price decline excessively, with its pharmacy business achieving double-digit growth for 15 consecutive quarters, indicating strong customer value [1] Group 2: Growth Potential in Coffee and Beauty Sectors - Dutch Bros (BROS.US) is anticipated to continue its sales and customer traffic growth, with a projected revenue increase of over 20% driven by strong brand recognition and competitive new products [2] - Ulta Beauty (ULTA.US) is expected to maintain its growth momentum under new leadership, with improved operational efficiency and a favorable competitive environment, leading to upward revisions in profit expectations for fiscal year 2024 [2] Group 3: Sports and Fitness Industry Insights - On (ONON.US) is focusing on product innovation and direct-to-consumer expansion, which is expected to lead to industry-leading sales growth and improved profit margins [3] - Peloton (PTON.US) is rated as a 'buy' with a target price of $11, supported by revenue growth and cost optimization, with a key focus on improving subscription user growth despite potential pricing risks [4]

Company Overview - On Holding (NYSE: ONON) is experiencing growth driven by strong international expansion, diversification in its product portfolio, and an increased presence in the direct-to-consumer channel, which is expected to serve as a foundation for future growth [1] Investment Insights - The company is positioned favorably for long-term growth as it focuses on quality and reasonable valuation, aligning with investment philosophies that prioritize fundamentals as the primary driver of share price [1]