On Holding AG (ONON) Stock

Users of Zacks.com have been paying a lot of attention to On Holding (ONON) lately. Therefore, it's important to understand the key information that could influence the stock's future.

On Holding (ONON) has recently become a popular stock among Zacks.com users. Therefore, it's important to look into what the future holds for this stock.

On Holding is experiencing a strong upward trend, driven by solid revenue growth and an effective direct-to-consumer approach, even though there are worries about its high valuation. The stock is valued at 51 times next year's earnings and has a PEG ratio of around 2, which is considered high, but its growth potential supports a Buy recommendation. The company's emphasis on direct-to-consumer sales has improved profit margins, and better inventory management has helped increase profitability by minimizing the need for discounts.

Artisan Partners, an investment management firm, published its investor letter for the Artisan Small Cap Fund for the third quarter of 2024. You can download the letter here. During this quarter, small cap stocks performed well, especially in July when the Russell 2000 Index had a return of 10.2%.

Users of Zacks.com have been paying a lot of attention to On Holding (ONON) lately. Therefore, it's important to understand the key information that could influence the stock's future.

On Holding is picking up speed and has plenty of opportunities for growth in the future.

Some retail stocks have experienced negative price movements, which may make some investors hesitant to explore this sector for new investment opportunities. While this cautious approach is understandable for those wanting to minimize risks, maintaining this mindset after last week's market rally could be unwise.

On Holdings' shares have maintained their impressive rally of over 100% this year after posting strong Q3 results. The company's revenue increased by more than 30% compared to last year, and it did not experience the same struggles in the U.S. market that other consumer companies have reported, with around 80% growth in China. On is also working on expanding its clothing line to go along with its running shoes and anticipates faster growth in apparel for the fourth quarter.

On Holding announced impressive results for the third quarter of 2024, reaching record sales, gross margin, and adjusted EBITDA margin, while also increasing its net sales forecast for the year. The LightSpray technology could greatly change the shoe industry, promoting efficiency, innovation, and long-term growth for the company. Even with competitive challenges, On's growth in market share, brand recognition, and innovative technologies set it up for continued revenue growth and strong returns.