Technical Analysis - On Holding (ONON) has recently reached a key level of support and has overtaken the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is a significant indicator for traders and analysts to determine support or resistance levels, and it is the first marker of an up or down trend [1] Performance Metrics - Over the past four weeks, ONON has gained 7.3%, and it is currently ranked a Zacks Rank 1 (Strong Buy), suggesting potential for further upward movement [2] - Positive earnings estimate revisions bolster the bullish case for ONON, with 2 higher revisions compared to none lower for the current fiscal year, and the consensus estimate has also increased [2] Investment Consideration - Investors are encouraged to consider adding ONON to their watchlist due to the important technical indicators and the positive trend in earnings estimate revisions [3]

Group 1: Royal Caribbean Cruises (RCL) - Royal Caribbean Cruises primarily serves the contemporary, premium, and deluxe segments of the cruise vacation industry [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 2.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The PEG ratio for Royal Caribbean Cruises is 0.43, significantly lower than the industry average of 1.61, indicating strong growth potential [2] Group 2: On Holding (ONON) - On Holding provides footwear and sports apparel products, including ultralight and stretchable fabrics and accessories [2] - The company also holds a Zacks Rank of 1 and has experienced a 2.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - On Holding has a PEG ratio of 0.89, which is lower than the industry average of 1.04, suggesting favorable growth characteristics [3] Group 3: Skyward Specialty Insurance Group, Inc. (SKWD) - Skyward Specialty Insurance Group is engaged in underwriting commercial property and casualty insurance coverages primarily in the United States [3] - The company carries a Zacks Rank of 1 and has seen a 5.0% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - The PEG ratio for Skyward Specialty Insurance Group is 0.75, compared to the industry average of 1.38, indicating strong growth potential [4]

In the latest trading session, On Holding (ONON) closed at $37.83, marking a +1.58% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.04%. Elsewhere, the Dow saw an upswing of 0.76%, while the tech-heavy Nasdaq appreciated by 1.03%. Coming into today, shares of the running-shoe and apparel company had lost 1.82% in the past month. In that same time, the Consumer Discretionary sector lost 5.13%, while the S&P 500 lost 6.74%. Market participants will be closely following the financi ...

Wall Street expects a year-over-year increase in earnings on higher revenues when On Holding (ONON) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 13, 2024, might help the stock move higher if these key numbers are better than expec ...

Company Overview - On Holding (ONON) is projected to have earnings of $0.95 per share and revenue of $2.56 billion for the entire year, reflecting increases of +143.59% and +28.38% compared to the previous year [1] - The company is currently rated 1 (Strong Buy) in the Zacks Rank system, which has shown an average annual return of +25% for 1 stocks since 1988 [2] Financial Performance - For the upcoming earnings release, On Holding's EPS is expected to be $0.19, indicating a 375% increase from the same quarter last year, with revenue projected at $623.44 million, a 26.15% increase year-over-year [6] - The company has a Forward P/E ratio of 42.34, which is significantly higher than the industry average Forward P/E of 15.01 [8] Market Position - On Holding's stock price recently closed at $39.83, showing a -0.97% change from the previous day, which is less than the S&P 500's daily gain of 0.08% [5] - Over the past month, shares of On Holding have gained 3.66%, while the Consumer Discretionary sector has lost 1.74% and the S&P 500 has lost 0.21% [10] Industry Context - The Leisure and Recreation Products industry, which includes On Holding, currently holds a Zacks Industry Rank of 219, placing it in the bottom 14% of over 250 industries [12] - The average PEG ratio for Leisure and Recreation Products stocks is 1.11, while On Holding's PEG ratio is 0.96, indicating a more favorable valuation relative to expected earnings growth [3]

Investors might want to bet on On Holding (ONON) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. ...

Investors should also take note of any recent adjustments to analyst estimates for On Holding. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 225, this industry ranks in the bottom 11% o ...

Investment Thesis - ONON is focusing on increasing brand recognition through innovative product designs and success in elite athletics, leveraging its "lightning and rain strategy" to broaden consumer adoption [1] - The company has a growing list of elite athletes endorsing its products, which is expected to enhance brand visibility, especially during the upcoming Summer Olympic Games in Paris [1][22] - ONON's footwear lineup has been updated, and the company is maintaining pricing discipline, evidenced by the absence of discounts in stores [1][5] - The company has significant growth potential, with expectations of maintaining stellar free cash flow growth and outpacing GDP growth rates in the long term [1][13] Market Position and Competitive Landscape - The athletic footwear and apparel market is highly competitive, with consumer preferences being volatile [1] - ONON's pricing power is demonstrated by its lack of discounting, contrasting with competitors like Under Armour and Hoka, which frequently run sales [5][25] - The company is currently a niche player but aims to expand into broader demographics and product categories to compete with larger shoemakers [1][5] Financial Performance and Projections - ONON has achieved a revenue growth rate of 58% CAGR and operating income growth of 124% CAGR since 2019, with free cash flow transitioning from a loss of 287.3 million Swiss francs in 2022 to a gain of 271.5 million in the TTM period [24] - The company turned profitable in 2022 and has been expanding its operating and free cash flow margins [8] - Future revenue growth is projected at 30% for 2024, with a gradual decline expected thereafter, while operating margins are anticipated to expand to 32% by 2034 [10][11][33] Product Development and Innovation - ONON's CloudTec technology is a key differentiator that could enhance its market position, similar to Hoka's trajectory from shoes to a complete apparel line [16] - The company is investing in marketing and product development to drive brand awareness and expand its offerings, particularly in the apparel segment, which currently contributes only 5% of revenue [25][5] Brand Recognition and Athlete Endorsements - The "lightning" aspect of ONON's strategy focuses on winning at elite levels, while the "rain" aspect aims to reach everyday athletes and casual consumers [28] - Notable athletes, including marathon winners and tennis champions, are endorsing ONON, which could significantly boost brand recognition during high-profile events like the Olympics [22][23] Valuation Metrics - ONON's current valuation appears high, with a forward P/E of 46x and a P/S of 4.8x, but its PEG ratio of 1.21 indicates strong earnings growth potential [26] - The company is modeled to achieve substantial free cash flow growth, which could justify its current valuations if growth targets are met [13][27]

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A highe ...

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. As of now, On Holding holds a Zacks Rank of #3 (Hold). The running-shoe and appa ...