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, ...

kyoshino/iStock via Getty Images Introduction On Holding (NY SE: ONON) – the viral, premium pertormance sportswear brand — is up about 60% so far this year, outperforming pretty much every single company in its peer gr VAL 59.44% On Holding AG (ONON) Price % Change 59.44% 50.00% 25.00% 0.00% -25.00% Jan '24 Mar '24 May '24 Jul '24 Seeking AlphaQ AUg 22, 2024, 11:46 AM EDT Powered by YC H A R T S Data by Y Charts What is up with the stock lately? How was On able to outperform by such a wide margin? And with ...

Shares of this high-flying footwear leader can keep running. At a time when many companies are citing consumer-spending headwinds or challenging macroeconomic conditions, On Holding (ONON -1.70%) has stood out as an exception. Shares of the high-performance footwear and athletic apparel maker are up nearly 60% this year on the heels of stellar operating trends and financial results. There's a lot for investors to cheer about here, but does this rally in On Holding stock have legs to keep running? Here's wha ...

On Holding is only scratching the surface of its potential. On Holding (ONON -0.47%) is known to be a fast-growing shoe brand, but it has the potential to grow into far more areas, such as apparel and international markets. In this video, Travis Hoium covers why this stock has so much potential in the long term. *Stock prices used were end-of-day prices of Aug. 13, 2024. The video was published on Aug. 14, 2024. ...

These underappreciated stocks have what it takes to deliver market-crushing returns. Summer is winding down, and 2024 seems to be flying by. Leading artificial intelligence (AI) players and megacap techs including Nvidia and Microsoft continue to generate excitement and dominate the stock market conversation. However, some analysts now believe that bullish momentum is poised to rotate into smaller, lesser-known companies. Whether the big rotation winds up happening remains to be seen, but it would be a mist ...