On Holding AG reaches 20-day high amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 26 2024
0mins
Should l Buy ONON?
Source: SeekingAlpha
On Holding AG's stock rose by 3.27% today, reaching a 20-day high. This movement occurs in a mixed market environment, with the Nasdaq-100 down 0.59% and the S&P 500 slightly up by 0.04%.
The increase in On Holding AG's stock price is attributed to sector rotation, as investors are shifting their focus towards companies in the activewear sector, despite the overall market's mixed performance. This trend suggests that On Holding AG is gaining traction among investors looking for growth opportunities in a challenging market.
The implications of this price movement indicate a potential shift in investor sentiment towards On Holding AG, which may lead to increased interest and further price appreciation if the trend continues.
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Analyst Views on ONON
Wall Street analysts forecast ONON stock price to rise
21 Analyst Rating
18 Buy
2 Hold
1 Sell
Strong Buy
Current: 46.480
Low
30.00
Averages
60.79
High
85.00
Current: 46.480
Low
30.00
Averages
60.79
High
85.00
About ONON
On Holding AG is a Switzerland-based company active in athletic sports accesories industry. The Company provides footwear and sports apparel and is engaged in developing and distributing performance sports products, through independent retailers and global distributors. The Company sells its products trough the internet and its own stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
On Holding Scheduled to Announce Q4 Earnings on March 3
- Earnings Announcement: On Holding is set to announce its Q4 earnings on March 3 before market open, with consensus EPS estimate at $0.28, reflecting a 15.2% year-over-year decline, while revenue is expected to reach $946.37 million, indicating a robust 56.0% year-over-year growth, which could significantly impact the company's stock performance.
- Historical Performance: Over the past two years, On Holding has surpassed EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's financial stability and fostering market confidence in its operations.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and two downward adjustments, while revenue estimates experienced five upward revisions and two downward adjustments, indicating mixed analyst sentiment that could influence investor decisions.
- Competitive Landscape: To tackle high labor costs and tariffs, On Holding has implemented robotic technology in its plants, which not only reduces operational costs but also strengthens its competitive position against giants like Nike and Adidas.
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- Strong Sales Performance: On Holding reported fourth-quarter net sales of 743.8 million Swiss francs ($946 million) in 2025, reflecting a 30.6% year-over-year increase and surpassing market expectations of 723.5 million francs, indicating robust performance in the premium athletic footwear market.
- Annual Sales Milestone: For the first time, the company exceeded 3 billion Swiss francs in total sales for 2025, reaching 3.01 billion francs, slightly above the estimated 2.99 billion francs, demonstrating its growing market share in the rapidly expanding sports apparel sector.
- Future Growth Outlook: On expects net sales to grow by at least 23% in 2026, projecting a minimum of 3.44 billion francs, although sell-side analysts had anticipated closer to 3.7 billion francs, reflecting a cautious market sentiment regarding future growth.
- Profitability Improvement: The company achieved an adjusted EBITDA of 131 million Swiss francs, up 31.8%, with an EBITDA margin of 18.8%, exceeding market expectations of 112.4 million francs, showcasing success in operational efficiency and brand positioning.
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On Holding AG Surpasses CHF 3 Billion Revenue Milestone in 2025
- Revenue Milestone: On Holding AG achieved over CHF 3 billion in revenue for fiscal year 2025, a 30% increase from 2024, marking a significant growth in the global sportswear market and reinforcing its position as a premium brand.
- Profitability Improvement: The company reported an adjusted EBITDA of CHF 567 million, up 46.3% year-over-year, demonstrating efficient operations and strategic execution, which is expected to provide ample funding for future investments and expansions.
- Market Expansion: Sales in the Asia-Pacific region surged by 106.7% in 2025, reflecting strong demand and brand appeal globally, further driving the company's internationalization strategy.
- Future Outlook: On anticipates continued robust growth in 2026, leveraging its innovation pipeline and brand expansion strategy, showcasing confidence in future markets while planning to reinvest in high-return areas to support long-term growth.
See More
On Holding Scheduled to Announce Q4 Earnings on March 3
- Earnings Announcement: On Holding is set to announce its Q4 earnings on March 3 before market open, with consensus EPS estimate at $0.28, reflecting a 15.2% year-over-year decline, while revenue is expected to reach $946.37 million, indicating a robust 56.0% year-over-year growth, which could significantly impact the company's stock performance.
- Historical Performance: Over the past two years, On Holding has surpassed EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's financial stability and fostering market confidence in its operations.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and two downward adjustments, while revenue estimates experienced five upward revisions and two downward adjustments, indicating mixed analyst sentiment that could influence investor decisions.
- Competitive Landscape: To tackle high labor costs and tariffs, On Holding has implemented robotic technology in its plants, which not only reduces operational costs but also strengthens its competitive position against giants like Nike and Adidas.
See More
AeroVironment Shares Plunge 17% Amid Contract Risk
- Contract Risk Impact: AeroVironment (AVAV) shares fell 17.4% yesterday due to the U.S. government reopening its $1.7 billion Satellite Communications Augmentation Resource (SCAR) contract, raising concerns about potential business loss and future revenue impact.
- Sector Divergence: While other defense stocks rallied, AeroVironment's decline highlights market worries over contract stability, which could undermine investor confidence and affect the company's valuation.
- Apple's New Product Launch: Apple (AAPL) is set to unveil the $599 iPhone 17e, targeting budget-conscious consumers; despite compromises in camera and display quality, this move could help expand its market share.
- On Holding Sales Guidance Downgrade: On Holding (ONON) dipped over 11% in pre-market trading after its 2026 sales guidance fell short of expectations, despite fourth-quarter earnings beating analyst forecasts, indicating market concerns about its growth potential.
See More
Target and Best Buy Beat Earnings Expectations
- Target's Strong Earnings: Target reported an adjusted earnings per share of $2.44 for Q4, exceeding analysts' expectations of $2.16, although its revenue of $30.45 billion fell slightly short of consensus, demonstrating resilience in a competitive retail environment.
- Best Buy's Robust Performance: Best Buy's adjusted earnings per share for Q4 reached $2.61, surpassing the $2.47 expected by analysts, despite revenue of $13.81 billion missing the $13.88 billion consensus, indicating sustained appeal in the electronics retail sector.
- On Holding's Disappointing Outlook: On Holding anticipates net sales growth of at least 23% by 2026, which is below the consensus estimate of 3.7 billion Swiss francs, leading to a nearly 10% drop in stock price, reflecting investor concerns about future growth.
- MongoDB's Decline: MongoDB expects first-quarter adjusted earnings per share between $1.15 and $1.19, falling short of the $1.21 forecasted by analysts, with revenue expectations also missing the mark, resulting in a more than 26% plunge in stock price, highlighting market disappointment in its growth prospects.
See More
Movers in the Market: MongoDB, Archer Aviation, Plug Power, Quantum Computing, Sandisk, Freeport-McMoRan, and Others
- Stock Market Trends: Stock futures are declining as investors express concerns over the ongoing conflict in the Middle East.
- Investor Sentiment: The uncertainty surrounding the situation is contributing to negative sentiment in the financial markets.
See More
On Holding Reports Strong Growth in 2025 Despite Stock Decline
- Strong Sales Performance: On Holding reported fourth-quarter net sales of 743.8 million Swiss francs ($946 million) in 2025, reflecting a 30.6% year-over-year increase and surpassing market expectations of 723.5 million francs, indicating robust performance in the premium athletic footwear market.
- Annual Sales Milestone: For the first time, the company exceeded 3 billion Swiss francs in total sales for 2025, reaching 3.01 billion francs, slightly above the estimated 2.99 billion francs, demonstrating its growing market share in the rapidly expanding sports apparel sector.
- Future Growth Outlook: On expects net sales to grow by at least 23% in 2026, projecting a minimum of 3.44 billion francs, although sell-side analysts had anticipated closer to 3.7 billion francs, reflecting a cautious market sentiment regarding future growth.
- Profitability Improvement: The company achieved an adjusted EBITDA of 131 million Swiss francs, up 31.8%, with an EBITDA margin of 18.8%, exceeding market expectations of 112.4 million francs, showcasing success in operational efficiency and brand positioning.
See More
On Holding AG Surpasses CHF 3 Billion Revenue Milestone in 2025
- Revenue Milestone: On Holding AG achieved over CHF 3 billion in revenue for fiscal year 2025, a 30% increase from 2024, marking a significant growth in the global sportswear market and reinforcing its position as a premium brand.
- Profitability Improvement: The company reported an adjusted EBITDA of CHF 567 million, up 46.3% year-over-year, demonstrating efficient operations and strategic execution, which is expected to provide ample funding for future investments and expansions.
- Market Expansion: Sales in the Asia-Pacific region surged by 106.7% in 2025, reflecting strong demand and brand appeal globally, further driving the company's internationalization strategy.
- Future Outlook: On anticipates continued robust growth in 2026, leveraging its innovation pipeline and brand expansion strategy, showcasing confidence in future markets while planning to reinvest in high-return areas to support long-term growth.
See More
