Group 1: Investment Landscape - The current investment landscape is dominated by trillion-dollar companies like Nvidia and Alphabet, benefiting from the artificial intelligence trend [1] - Risk-averse investors may prefer blue-chip companies such as DBS Group, which have consistently increased dividends and share prices [1] Group 2: Overlooked Growth Stocks - There are overlooked growth stocks that present strong growth potential, with three highlighted as candidates that could double in the next five years [2] Group 3: On Holding AG - On Holding AG has gained visibility through endorsements from celebrities and has a market capitalization exceeding US$15 billion [3][4] - The company experienced a 90% sales increase from CHF 1.22 billion to CHF 2.32 billion between 2022 and 2024, with a forecasted 34% sales increase for 2025 [4] - Analysts project a 22.6% revenue growth for On in 2026, compared to Nike's expected 5.2% growth [5] - The footwear market is projected to reach US$588 billion by 2030, with On's growth dependent on expanding into adjacent segments [5][6] - In the first nine months of 2025, On's revenue from apparel and accessories grew by 83% and 127%, respectively, while footwear grew by only 30% [6] - On recorded a 107% growth in the Asia Pacific region for the same period, compared to 19% in the Americas and 35% in EMEA [7] Group 4: Keppel Corp - Keppel Corp has transitioned from being an oil rig builder to focusing on asset management, aiming to generate recurring income [10][11] - In 9M 2025, net profit from "New Keppel" increased by 25% year-on-year, excluding non-core assets [12] - The company returned S$6.6 billion to shareholders between January 2022 and September 2025, representing over a third of its market capitalization of S$18.6 billion [13] - Keppel aims to manage S$200 billion in assets by 2030, having acquired 50% of Aermont Capital to expand its AUM by S$24 billion [14] - The asset management industry’s high operating leverage could lead to increased profits and distributions to investors [15] Group 5: Capitaland Investment - Capitaland Investment has restructured to focus on asset management after its real estate development business was privatized [18][19] - Despite a nearly 50% increase in Keppel's stock price, CLI's stock price has declined due to poor financial performance, with a 24% revenue drop in H1 2025 [20] - CLI's recent listing of two Chinese assets on the Shanghai Stock Exchange raised S$409 million, indicating strong demand [22] - Partnerships with Coronade Properties and SC Capital Partners Group may enhance CLI's market presence and revenue potential [24] - A potential merger with Mapletree Investments could create a significant asset manager with S$195 billion in AUM, positioning CLI as a dominant player [25] Group 6: Investment Potential - The rule of 72 suggests that a stock with a 15% growth rate could double in approximately 4.8 years, applicable to On if it continues its expansion [26] - Keppel and CLI, being more mature, may not see such rapid growth but can still increase earnings through economies of scale in asset management [27] - A merger between CLI and Mapletree could accelerate growth, although it may present integration challenges [28] - Overlooked companies may provide significant upside potential for investors who recognize early momentum [29]

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Core Insights - On Holding AG (ONON) has shown exceptional performance in the athletic footwear and apparel market, with a 34.5% increase in stock price over the past month, raising questions about its current valuation and investment potential [1][5][17] Performance Overview - ONON has outperformed the Zacks Retail - Apparel and Shoes industry, which rose by 17.5%, and the broader Retail and Wholesale sector, which declined by 1.2% [2] - The stock closed at $47.02, still below its 52-week high of $64.05 reached on January 30, 2025 [3] Sales Growth - Direct-to-consumer (DTC) sales increased by 27.6%, while apparel sales surged by 86.9%, with over 1 million units sold in a single quarter [5][8] - APAC sales grew by 109.2% in Q3, contributing nearly 20% of total sales, driven by strong demand in China, Korea, and Japan [5][9] Strategic Initiatives - The company is shifting towards higher-margin DTC channels, which now account for 39.6% of total net sales, up from 38.8% the previous year [7] - The apparel segment is viewed as a significant growth avenue, expanding the total addressable market and reducing reliance on seasonal running shoe sales [8] Market Positioning - ONON maintains its premium brand status through elite athlete endorsements and cultural relevance, supported by a strong innovation pipeline [10] - The company raised its full-year 2025 guidance, expecting net sales to grow by 34% year-over-year on a constant-currency basis, up from a previous estimate of 31% [13] Financial Estimates - The Zacks Consensus Estimate for earnings per share has been revised upward, reflecting positive sentiment around the company [14] - ONON's forward 12-month price-to-earnings (P/E) ratio is 28.11, indicating a premium valuation compared to the industry average of 18.03 [15][16] Investment Outlook - Despite the recent stock rally, ONON is positioned as a premium, innovation-driven brand with a strong DTC channel and expanding apparel business, making it a compelling investment opportunity [17][19]

Core Insights - ON Holding AG (ONON) has raised its full-year 2025 net sales growth forecast to 34% from 31% on a constant-currency basis, indicating strong demand across various channels and regions [1][8] - The company aims to double its net sales by 2026, projecting a minimum 30% constant currency CAGR from 2023 to 2026, with at least 23% growth expected in 2026 [2][8] - Key growth drivers include apparel, direct-to-consumer sales, and momentum in the Asia Pacific markets, alongside product innovations like the upcoming Cloudrunner Max [3][4][8] Sales and Financial Metrics - The updated sales forecast suggests reported net sales of CHF 2.98 billion for 2025, an increase from the previous estimate of CHF 2.91 billion [1] - The Zacks Consensus Estimate for ONON's current financial-year sales implies a year-over-year growth of 41.2%, while earnings per share are expected to decline by 12.7% [11] - Current estimates for sales in the next year (2026) are projected at CHF 4.49 billion, reflecting a year-over-year growth of 20.64% [12] Competitive Positioning - ONON's shares have increased by 37.7% over the past month, outperforming the industry average rise of 17.6% [5] - The company trades at a forward P/E ratio of 28.85, which is higher than the industry average of 18.04, indicating a premium valuation compared to competitors like Deckers and Dollar General [6][9]

Core Viewpoint - On Holding (ONON) shares have increased by 37.5% in the past four weeks, closing at $48.14, with a mean price target of $60.71 indicating a potential upside of 26.1% [1] Price Targets and Analyst Estimates - The mean estimate consists of 21 short-term price targets with a standard deviation of $10.43, where the lowest estimate is $30.00 (indicating a 37.7% decline) and the highest is $85.00 (indicating a 76.6% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Consensus - Analysts are optimistic about ONON's earnings prospects, as indicated by a strong agreement in revising EPS estimates higher, which correlates with near-term stock price movements [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 88.1%, with six estimates moving higher and one lower [12] - ONON holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While consensus price targets are often sought after, they may mislead investors, as empirical research shows they rarely indicate actual stock price movements [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Market Overview - U.S. stock markets are experiencing a continued upward trend in 2025, supported by expectations of further Federal Reserve rate cuts, strong third-quarter earnings, and optimism surrounding artificial intelligence [1] Recommended Growth Stocks - Five growth stocks are recommended for portfolio strengthening in December: Micron Technology Inc. (MU), Comfort Systems USA Inc. (FIX), Kinross Gold Corp. (KGC), On Holding AG (ONON), and MongoDB Inc. (MDB). Each stock has a Zacks Rank 1 (Strong Buy) and a Growth Score of A [2] Micron Technology Inc. (MU) - Micron Technology is a leader in the AI infrastructure boom, driven by strong demand for high-bandwidth memory (HBM) solutions, with record sales in the data center market [6][10] - The growing adoption of AI servers is reshaping the DRAM market, increasing demand for high-capacity DIMMs and low-power server DRAM, which MU is well-positioned to capitalize on [7] - Micron's diversification strategy has created a more stable revenue base by shifting focus from consumer electronics to resilient sectors like automotive and enterprise IT [8] - Expected revenue and earnings growth rates for Micron are 62% and over 100%, respectively, for the current year ending August 2026 [10] Comfort Systems USA Inc. (FIX) - Comfort Systems USA operates in the commercial and industrial HVAC markets, with a focus on manufacturing plants, office buildings, and healthcare facilities [11] - The data center boom, driven by AI and cloud computing, is increasing demand for specialized HVAC solutions, presenting high-margin opportunities for FIX [12][13] - Expected revenue and earnings growth rates for Comfort Systems are 14.7% and 16.4%, respectively, for the next year [13] Kinross Gold Corp. (KGC) - Kinross Gold has a strong production profile and a promising pipeline of exploration projects, focusing on organic growth through its Tasiast mine [14] - The company expects higher output and cash flow from expansions at Tasiast, Manh Choh, and Great Bear, benefiting from rising gold prices [15][16] - Expected revenue and earnings growth rates for Kinross are 9.9% and 32.6%, respectively, for the next year [16] On Holding AG (ONON) - On Holding provides footwear and sports apparel products, with expected revenue and earnings growth rates of 21.1% and 79.3%, respectively, for the next year [17] MongoDB Inc. (MDB) - MongoDB has expanded its Atlas platform into analytics, focusing on developer-friendly interfaces and distributed architectures, targeting modern workloads [18] - The company has benefited from platform adoption across enterprises and startups, with a focus on larger enterprises supporting deal sizes and sales efficiency [19] - Expected revenue and earnings growth rates for MongoDB are 12.8% and 16.6%, respectively, for the next year ending January 2027 [21]

Investment Rating - The investment rating for the textile, apparel, and luxury goods industry is "Positive" and maintained [9] Core Insights - The report summarizes the Q3 2025 financial performance of overseas sports brands, highlighting sales performance, profitability, and inventory status, indicating a gradual improvement in overall performance [2][4] - Revenue performance among major footwear and apparel companies shows divergence, with some brands experiencing strong growth while others face challenges [5][6] - The outlook for the industry suggests a gradual recovery in demand and inventory replenishment, particularly for brands like Adidas and On, while Nike continues to face headwinds [8][36] Revenue Performance - Revenue growth varied significantly among companies in Q3 2025, with Adidas (+12%), On (+35%), and Amer Sports (+30%) showing strong growth, while Nike and VF both reported a decline of -1% [5][19] - The overall revenue performance in Q3 2025 improved compared to Q2, despite some brands continuing to face pressure [5][6] Guidance - The visibility for the full year has improved, with brands like UA restoring full-year guidance, indicating a positive trend despite expected performance divergence [6][26] - Strong growth trends are expected to continue for On and Amer Sports, while Nike and VF are projected to see declines but with signs of improvement [6][31] Inventory - The industry is entering a phase of inventory replenishment, with moderate recovery in demand observed in the U.S. and Europe, although challenges remain in certain markets [7][36] - U.S. apparel inventory levels are in a destocking phase, with wholesale inventory ratios declining since 2023, while retail inventory levels have stabilized [7][36] Future Outlook - The industry is expected to gradually transition into a replenishment phase, with demand showing signs of recovery, particularly in the U.S. apparel sector [8][36] - Brands like Adidas are actively seeking to replenish inventory for growth, while Nike continues to destock amid ongoing challenges [8][36]

Core Insights - ON Holding AG (ONON) is transitioning its business model towards higher-margin direct-to-consumer (DTC) channels, with a notable increase in DTC sales growth compared to wholesale [2][5] Sales Performance - DTC net sales increased by 27.6% on a reported basis and 37.5% on a constant-currency basis, while wholesale sales grew by 23.3% reported and 32.5% in constant currency [3] - The DTC channel now accounts for 39.6% of total net sales, up from 38.8% year-over-year, indicating a shift in the sales mix [3][9] - The wholesale channel's share of net sales decreased by 80 basis points year-over-year [3][9] Strategic Initiatives - Management emphasizes the strengthening relationship between e-commerce and owned retail, as omnichannel customers exhibit higher loyalty and lifetime value [4] - The retail network is expanding in key global cities, enhancing brand positioning through premium store design and digital experiences [4] Competitive Landscape - Competitors like Deckers and Wolverine are also focusing on balancing their channel strategies, with Deckers aiming for a 50% split between DTC and wholesale channels [6] - Wolverine is prioritizing DTC across its portfolio, with notable growth in its e-commerce channel [7] Market Performance - ON Holding shares have increased by 22.6% in the past month, outperforming the industry average of 11.6% [8] Financial Metrics - The Zacks Consensus Estimate for ONON's current financial-year sales indicates a year-over-year growth of 41.6%, while earnings per share are expected to decline by 12.7% [11] - Current estimates for sales and earnings per share show significant growth expectations for the upcoming quarters [14][15]

Core Viewpoint - The article emphasizes the importance of portfolio diversification and highlights five growth stocks that present significant short-term and long-term investment opportunities beyond artificial intelligence stocks [2]. Group 1: MercadoLibre - MercadoLibre operates an online marketplace across 18 Latin American countries, benefiting from the region's growing e-commerce adoption [3]. - The company reported a 49% year-over-year revenue increase (currency neutral) in Q3 2025, with gross merchandise volume (GMV) rising by 35% [4]. - MercadoLibre is expanding its fintech services, gaining new users rapidly and increasing its credit portfolio, indicating strong growth potential [4][5]. Group 2: Dutch Bros - Dutch Bros operates over 1,000 stores in the U.S. and plans to expand significantly, aiming for 7,000 stores in the future [9]. - The company achieved a 25% year-over-year sales increase in Q3 2025, with comparable sales up by 5.7% and earnings per share rising from $0.11 to $0.14 [9]. - Dutch Bros focuses on speed and friendly service, with a business model primarily consisting of drive-thru locations and mobile ordering [8]. Group 3: On Holding - On has established a premium athletic wear brand, particularly known for its Cloudtec footwear, and is experiencing robust growth despite a challenging market [12][13]. - The company reported a 35% year-over-year revenue increase (currency neutral) in Q3 2025, with a gross margin of 60.6% and a 290% increase in net income [13]. - On is expanding its brand presence through both direct-to-consumer and wholesale channels, indicating potential for significant investor gains [13]. Group 4: Nu Holdings - Nu is a digital bank based in Brazil, serving over 60% of the adult population and expanding into new regions like Mexico and Colombia [14][15]. - The company reported a 39% year-over-year increase in revenue and net income in Q3 2025, with average revenue per active user rising from $11 to $12 [15]. - Nu is pursuing long-term expansion plans, including applying for a bank charter in the U.S., which presents substantial growth opportunities [15]. Group 5: Amazon - Amazon is the largest e-commerce company in the U.S., with a significant market share of around 40%, and is continuously launching new services [17]. - The company’s Amazon Web Services (AWS) is the largest cloud computing provider globally, playing a crucial role in its growth, particularly in AI [18]. - Management sees explosive growth opportunities in AI, indicating that Amazon could be a major long-term winner in this space [18].

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for On Holding (ONON) [1][5]. Group 1: Analyst Recommendations - On Holding has an average brokerage recommendation (ABR) of 1.48, indicating a consensus between Strong Buy and Buy, based on 24 brokerage firms [2]. - Out of the 24 recommendations, 17 are Strong Buy and 3 are Buy, which account for 70.8% and 12.5% of all recommendations respectively [2]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often fail to guide investors effectively [5][11]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][11]. - The ABR is calculated solely from brokerage recommendations, which may not reflect the actual potential for price appreciation [10][11]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to the ABR [8][12]. Group 3: Zacks Rank vs. ABR - The Zacks Rank is a quantitative model that utilizes earnings estimate revisions and is displayed in whole numbers, contrasting with the decimal-based ABR [9][10]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, while the ABR may not be current [13]. - On Holding has achieved a Zacks Rank 1 (Strong Buy) due to a 90.4% increase in the Zacks Consensus Estimate for the current year, indicating strong analyst optimism [14][15].