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]

(Reuters) -Swiss sneaker brand On Holding said on Tuesday its chief operating officer, Sam Wenger, is stepping down at the end of the year after eight years in the role. Scott Maguire, currently chief innovation officer, will assume the expanded role of chief innovation and operations officer starting January 1, 2026, the Roger Federer-backed company said in a statement. Wenger will remain with the company until the end of the first quarter of 2026, it added. Maguire, who joined On in 2025, had previous ...

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]

Group 1 - 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 [1] - The company's growth strategies are expected to serve as a foundation for future growth [1]

Group 1 - Sands Capital's "Global Growth Strategy" reported a portfolio return of 21.7% in Q2 2025, outperforming the MSCI ACWI index which returned 11.5% [1] - The second quarter results marked the fourth best performance since the fund's inception in 2008, both in absolute and relative terms [1] - The fund's top five holdings can be referenced for insights into its best investment picks for 2025 [1] Group 2 - On Holding AG (NYSE:ONON) experienced a one-month return of -4.91% and a 52-week decline of 15.55%, closing at $43.02 per share with a market capitalization of $14.048 billion on September 16, 2025 [2] - On Holding AG was identified as one of the top individual absolute detractors in the Sands Capital report, alongside Atlassian, Nike, Builders FirstSource, and Carlisle Companies [3] - The number of hedge funds holding On Holding AG decreased from 53 to 42 from the previous quarter, indicating a decline in popularity among hedge funds [4]

Industry Overview - The sportswear industry is experiencing rapid growth, driven by secular trends [1] - On Holding AG (NYSE: ONON) is highlighted as a strong performer within the industry [1] Investment Analysis - The analysis focuses on identifying undervalued stocks with growth potential, emphasizing a fundamental approach [1]