When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about On Holding (ONON) . On Holding currently has an average brokerage recommendation (ABR) of 1.43 ...

Much ado has been made this year about Nike's ( NKE ) woes, and how the company has been plagued by weaker sales in China and a desertion in what used to be its core category, running shoes. With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has bee ...

Group 1 - On Holding (ONON) closed at $49.95, with a +0.44% change, outperforming the S&P 500's daily loss of 0.19% [1] - Over the past month, shares of On Holding have appreciated by 15.14%, significantly outperforming the Consumer Discretionary sector's gain of 2.68% and the S&P 500's gain of 2.06% [1] Group 2 - The upcoming earnings release is projected to show an EPS of $0.25, a 13.64% increase year-over-year, and revenue of $718.09 million, a 32.04% increase compared to the previous year [2] - For the annual period, earnings are anticipated at $1.02 per share and revenue at $2.65 billion, reflecting increases of +161.54% and +32.58% respectively from last year [3] Group 3 - Recent estimate revisions for On Holding indicate positive sentiment regarding the company's business outlook, as these revisions are correlated with near-term share price momentum [3][4] - The Zacks Rank system, which incorporates estimate changes, currently ranks On Holding at 3 (Hold), with a recent upward shift of 1.93% in the EPS estimate [5] Group 4 - On Holding has a Forward P/E ratio of 48.89, indicating a premium compared to its industry's Forward P/E of 19.34 [5] - The company has a PEG ratio of 1.11, which is lower than the average PEG ratio of 1.92 for the Leisure and Recreation Products industry [6] Group 5 - The Leisure and Recreation Products industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 222, placing it in the bottom 13% of over 250 industries [6][7]

Shares of On Holding AG (ONON) have gained 12.2% in the past month compared with the industry's 6.7% growth. The recent stellar performance puts it ahead of competitors like American Outdoor Brands, Inc. (AOUT) , Acushnet Holdings Corp. (GOLF) and Academy Sports and Outdoors, Inc. (ASO) in terms of price performance in the past month. ONON is riding on the success of its multi-channel strategy, which has effectively captured global brand momentum and translated it into strong sales growth across all channel ...

Industry Overview - The sports apparel industry is experiencing significant changes, with established companies like Nike and Adidas facing competition from emerging brands such as On Holding [1][2] - On Holding has differentiated itself with advanced technology in its shoes and a strong push into apparel, leading to rapid growth [2] Company Performance - On Holding's revenue has more than tripled over the past three years, reporting a 28% year-over-year growth in Q2 2024 with revenue of 567.7 million Swiss francs (approximately $631.7 million) [3] - The company has seen substantial growth in Asia, with currency-neutral revenue growth of 85% in the last quarter [3] Brand Positioning - On Holding has successfully blended sportswear with fashion and culture, maintaining a high-performance image while expanding its cultural impact [4] - The partnership with actress Zendaya for the "Dream On" campaign highlights the brand's focus on cultural relevance [4] Challenges and Risks - For On Holding to sustain its premium valuation, it must continue to grow rapidly, which is challenging for a high-end specialty brand [5] - The company risks diluting its brand if it attempts to expand beyond its core athletic performance market [5] - Economic downturns could lead consumers to cut spending on luxury items, potentially impacting On's revenue growth [6] Valuation Concerns - On Holding currently has a price-to-earnings ratio (P/E) of 85, significantly higher than industry leaders Nike and Lululemon, raising concerns about its valuation [7] - The market appears to expect future growth to justify this high valuation, but the current levels may not provide a margin of safety for investors [8]

Lighthouse Films/DigitalVision via Getty Images Following a transition period for Nike, at the end of December 2023, our team decided to upgrade On Holding AG (NYSE:ONON) to a buy rating. This optimistic view was primarily influenced by the company's vital product innovation, favorable demand trends, and supportive results. On Holding AG was also confident in its ambitions for the FY 2026 targets, with plans for higher top-line sales, new store openings, and a key advantage on operating leverage to support ...

On Holding (ONON) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this running-shoe and apparel company have returned +21.8%, compared to the Zacks S&P 500 composite's +3.6% change. During this period, the Zacks Leisure and Recreation Products industry, which On Holding falls in, has gained 7.6%. The key question now is: What could be the stock's future ...

Investors are running to On Holding, and the business itself still has room to run. Ever since On Holding (ONON -3.23%) went public through an initial public offering (IPO) in late 2021, investors have wondered if the athletic footwear company could become the next Nike. Well, recently, it's turned out much better for investors. While Nike stock has dropped by more than 20% so far in 2024, On Holding shares have soared by 65%. That's because the company's sales continue to skyrocket. Net sales increased ove ...

Core Insights - On Holding (ONON) is recognized as one of the fastest-growing fashion brands globally, indicating strong market presence and growth potential [1] - The company is introducing a new innovation in footwear, featuring a custom-made upper part sprayed onto a molded lower section, which is currently utilized in high-end racing [1] - This innovation represents a significant transformation in the company's product offerings and business model, suggesting potential shifts in consumer preferences and market dynamics [1]

Will an already stretched consumer keep paying up for high-quality running shoes? Shoes made by Switzerland's On Holding (ONON 3.19%) are among the most in-demand in the world. But not content with its impressive recent market-share gains, On's management is setting two goals for the remainder of 2024 that seem quite ambitious. Regarding its market share gains, On's growth has been nothing short of spectacular since it went public. The company has enjoyed net sales growth of 69%, 47%, and 24% in 2022, 2023, ...