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].