Core Insights - The Asia-Pacific (APAC) region is the primary driver for On Holding AG's global expansion, achieving a remarkable 109.2% growth in constant currency during Q3 2025, with net sales reaching CHF 144.9 million, a 94.2% year-over-year increase [1][2] Sales Performance - APAC accounted for 18.2% of total net sales in Q3 2025, up from 11.7% in the same period last year [2][7] - For the nine-month period ending September 30, 2025, APAC net sales rose to CHF 384.6 million, reflecting a 106.6% increase year-over-year [2][3] Growth Trajectory - APAC is on track to contribute 20% of total sales, driven by strong performance in China and Japan, as well as growth in South Korea and Southeast Asia [3][4] Strategic Developments - The opening of a flagship store in Tokyo's Ginza district and notable athletic achievements have enhanced brand visibility in the region, indicating that APAC is a crucial part of On's long-term strategy [4][7] Competitive Landscape - On Holding's shares have increased by 17% over the past month, compared to a 19.9% rise in the industry, while competitors Deckers and Wolverine saw increases of 23.4% and 27.7%, respectively [5] Valuation Metrics - On Holding trades at a forward price-to-earnings (P/E) ratio of 28.61, which is higher than the industry average of 18.23, indicating a premium valuation compared to Deckers and Dollar General [8] Financial Estimates - The Zacks Consensus Estimate for On Holding's current financial-year sales suggests a year-over-year growth of 41.2%, while earnings per share are expected to decline by 12.7% [9][10]

Core Insights - The global athletic footwear and apparel market is experiencing a significant shift, exemplified by the competition between NIKE Inc. and On Holding AG, with NIKE as the established leader and On Holding as a rising challenger [2][4]. NIKE's Position - NIKE maintains its status as the largest athleticwear brand, holding an estimated high-teens market share globally, supported by its extensive reach across nearly 190 countries [5][6]. - The company's first-quarter fiscal 2026 results show renewed momentum, driven by its "Win Now" strategy and a recovery in its wholesale order book, with running segment growth exceeding 20% [6][7]. - NIKE's brand positioning is premium yet inclusive, targeting various consumer demographics through strong athlete partnerships and innovative product offerings [8]. - Despite its strong fundamentals, NIKE faces gross margin pressures due to increased promotional activities, unfavorable channel mix, and rising costs, particularly in Greater China [9][10]. On Holding's Position - On Holding is characterized by rapid growth and a strong brand presence in the premium performance segment, particularly in running, despite holding only a low-single-digit market share [12][13]. - The company's footwear sales are the primary revenue driver, with apparel also contributing significantly, indicating a growing wallet share among consumers [13]. - On Holding differentiates itself through a premium-first philosophy, focusing on innovation and athlete validation to enhance brand credibility [14][15]. - The brand targets affluent, design-conscious consumers, particularly Gen Z and urban professionals, with a business model emphasizing controlled distribution and full-price selling [15][16]. Financial Performance and Valuation - The Zacks Consensus Estimate for NIKE's fiscal 2026 sales indicates a year-over-year growth of 0.9%, while EPS is expected to decline by 23.6% [18]. - In contrast, On Holding's sales are projected to grow by 41.2% year-over-year, with EPS expected to decline by 12.7% [21]. - NIKE shares have decreased by 7.1% over the past three months, while On Holding shares have increased by 7.3% [23]. - NIKE's forward P/E ratio is 31.13, above its three-year median of 28.33, while On Holding's forward P/E is 28.62, below its median of 49.63, indicating a valuation contrast [24][26]. Conclusion - On Holding is viewed as the more attractive investment opportunity due to its stronger stock momentum, compelling valuation, and potential for sustained growth [28]. - NIKE, while a formidable leader, is currently focused on stabilization and execution rather than acceleration, with its valuation reflecting recovery expectations [29][30].

Core Insights - ON Holding AG's apparel business saw a remarkable growth of 86.9% year-over-year in Q3 of fiscal 2025, reaching net sales of CHF 50.1 million, with constant currency growth at 100.2% [1][8] - The apparel segment is becoming increasingly significant, with sales penetration rising to 6.3% from 4.2% a year earlier, indicating strong global demand across various channels [2][8] Sales Performance - The growth in apparel sales was broad-based, occurring across direct-to-consumer and wholesale channels, as well as all major geographic regions [2][8] - The Performance Running and Performance Training verticals were identified as key contributors to the apparel growth, driven by increased consumer adoption and purchase frequency [3] Strategic Importance - Management views the apparel segment as a "company within the company," emphasizing its strategic relevance in attracting first-time buyers who may expand their purchases into other categories [3][4] - The brand's connection with customers is strengthening, as evidenced by selling over one million apparel items for the first time in Q3 [4] Market Position - ON Holding's shares have increased by 17.8% over the past month, slightly underperforming compared to the industry average of 19.3% [5] - The company trades at a forward price-to-earnings (P/E) ratio of 28.93, which is higher than the industry average of 18.32, indicating a premium valuation compared to competitors like Deckers and Dollar General [6] Financial Estimates - The Zacks Consensus Estimate for ON Holding's current financial-year sales suggests a year-over-year growth of 41.2%, while earnings per share are expected to decline by 12.7% [10] - Sales estimates for the current quarter (12/2025) are projected at CHF 894.52 million, with a year-over-year growth estimate of 29.41% [11]

Core Viewpoint - The article highlights five non-tech large-cap stocks that are currently trading on the dip from their 52-week highs, presenting attractive investment opportunities for 2026 [2][4]. Group 1: Market Overview - On December 11, 2025, the Dow and S&P 500 indexes advanced by 1.3% and 0.2%, respectively, reaching new all-time high closings, while the tech-heavy Nasdaq Composite fell by 0.3% [2]. - The recent Federal Reserve rate cut and high valuations in the technology sector have prompted a shift in market focus towards rate-sensitive cyclical sectors such as utilities, industrials, financials, energy, materials, and healthcare [3]. Group 2: Featured Stocks On Holding AG (ONON) - On Holding specializes in footwear and sports apparel, with an expected revenue growth rate of 20.6% and earnings growth rate of 79.3% for the next year [5]. - The Zacks Consensus Estimate for next year's earnings has improved by 22% over the last 30 days, and ONON is currently trading at a 22.7% discount from its 52-week high [5]. Lennar Corp. (LEN) - Lennar is involved in homebuilding and financial services, benefiting from a tech-enabled manufacturing platform aimed at improving efficiencies and reducing costs [6]. - The company has an expected revenue growth rate of 1.9% and earnings growth rate of 11.1% for the next year, with a 21.2% discount from its 52-week high [8]. Jefferies Financial Group Inc. (JEF) - Jefferies has gained market share in investment banking without significantly expanding its balance sheet, which is expected to drive top-line growth [9]. - The expected revenue growth rate is 16.5% and earnings growth rate is 59.5% for the next year, with a 23.7% discount from its 52-week high [11]. Omnicom Group Inc. (OMC) - Omnicom's diverse portfolio across traditional and digital marketing segments enhances revenue stability [12]. - The expected revenue growth rate is 3.1% and earnings growth rate is 8.8% for the next year, currently trading at a 13.2% discount from its 52-week high [14]. Thomson Reuters Corp. (TRI) - Thomson Reuters provides value-added information and technology across various sectors, including law, tax, and financial services [15]. - The expected revenue growth rate is 7.6% and earnings growth rate is 12.4% for the next year, with a significant 39.6% discount from its 52-week high [16].

Core Insights - Victoria's Secret (VSCO) and On Holding (ONON) are both attractive stocks for value investors, but a deeper analysis is required to determine which is more appealing [1][3]. Valuation Metrics - Both VSCO and ONON currently hold a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3]. - VSCO has a forward P/E ratio of 20.09, while ONON has a significantly higher forward P/E of 51.72 [5]. - The PEG ratio for VSCO is 2.18, which is comparable to ONON's PEG ratio of 2.20, indicating similar expected earnings growth rates [5]. - VSCO's P/B ratio stands at 6.15, contrasting with ONON's P/B ratio of 16.14, suggesting that VSCO is more favorably valued in terms of market value versus book value [6]. - Based on these valuation metrics, VSCO receives a Value grade of A, while ONON is rated F, highlighting VSCO as the superior value option [6][7].

Market Overview - The Dow and S&P 500 indexes advanced 1.3% and 0.2%, respectively, reaching all-time high closings, while the Nasdaq Composite fell 0.3% [1] - Market participants are shifting from technology to rate-sensitive cyclical sectors such as utilities, industrials, financials, energy, materials, and health care due to the recent Fed rate cut and high valuations in the tech sector [2] Recommended Stocks - Five non-tech large-cap stocks are recommended, currently trading below their 52-week highs and at attractive valuations: On Holding AG (ONON), Lennar Corp. (LEN), Jefferies Financial Group Inc. (JEF), Omnicom Group Inc. (OMC), and Thomson Reuters Corp. (TRI) [3][9] On Holding AG (ONON) - On Holding specializes in footwear and sports apparel, offering products through various channels [6] - Expected revenue and earnings growth rates for next year are 20.6% and 79.3%, respectively, with a 22% improvement in earnings estimates over the last 30 days [7] Lennar Corp. (LEN) - Engaged in homebuilding and financial services, focusing on tech-enabled manufacturing to enhance efficiency and reduce costs [8] - Expected revenue and earnings growth rates for next year are 1.9% and 11.1%, respectively, with a 0.2% improvement in earnings estimates over the last week [10] Jefferies Financial Group Inc. (JEF) - Gained market share in investment banking without significantly expanding its balance sheet, which is expected to drive top-line growth [11] - Expected revenue and earnings growth rates for next year are 16.5% and 59.5%, respectively, with a 0.8% improvement in earnings estimates over the last week [13] Omnicom Group Inc. (OMC) - Operates a diverse portfolio in traditional and digital marketing, enhancing revenue stability [14] - Expected revenue and earnings growth rates for next year are 3.1% and 8.8%, respectively, with a 2.4% improvement in earnings estimates over the last 30 days [16] Thomson Reuters Corp. (TRI) - A leading provider of information and technology across various sectors, including law, tax, and financial services [17] - Expected revenue and earnings growth rates for next year are 7.6% and 12.4%, respectively, with a 2.1% improvement in earnings estimates over the last 60 days [18]

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]