Hate Nike? On Holding (ONON) stock could be the next big thing

Group 1: Nike's Performance - Nike's stock price has declined over 47% from its peak in 2021, making it one of the worst performers in the Dow Jones [1] - In comparison, Adidas has increased by over 139% from its lowest point in 2023, while Nike's stock has only risen by 12% over the past five years, compared to the S&P 500's nearly 81% increase in the same period [1] Group 2: On Holding's Growth Potential - On Holding has shown remarkable growth, with total revenue increasing from $276 million in 2019 to over $2.13 billion in 2023, marking a significant upward trend [2] - Analysts project On Holding's revenue to reach $2.5 billion this year and $3.16 billion by 2026, contrasting with Nike and Adidas, which are expected to have low single-digit revenue growth [4] - On Holding reported a 21.9% revenue increase in Q4, driven by strong website and retail traffic, with expectations of an 18.3% year-over-year revenue growth to $547 million in Q1 [4][6] Group 3: Profitability and Future Outlook for On Holding - On Holding achieved a net profit of over $94.2 million in 2023, up from $62.4 million the previous year, after a net loss of $186 million a year earlier [6] - The company aims for a compound annual growth rate (CAGR) of 26% through 2026 and targets an EBITDA margin of 18%, an increase from the current expectation of 16%-16.5% [6] - Analysts anticipate that On Holding will exceed profit per share estimates of 16 cents, indicating strong future performance potential [6]