On Holding AG rises 5.01% amid market strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2025
0mins
Should l Buy ONON?
Source: Business Insider
On Holding AG's stock price increased by 5.01% today, crossing above the 5-day SMA, reflecting a positive trading environment.
This rise is attributed to broad market strength, with the Nasdaq-100 up 1.06% and the S&P 500 up 0.72%, indicating a favorable sentiment among investors.
The upward movement in On Holding AG's stock suggests that the company is benefiting from the overall positive trends in the market, which may enhance investor confidence moving forward.
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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: 46.760
Low
30.00
Averages
60.79
High
85.00
Current: 46.760
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 Reports Disappointing Q4 Earnings Guidance
- Earnings Beat: On Holding reported adjusted earnings per share of 31 cents for Q4, surpassing the analyst estimate of 18 cents, yet the stock fell 7.46% amid a broader market sell-off, indicating investor concerns.
- Disappointing Revenue Guidance: The company expects fiscal year 2026 net sales to exceed $4.304 billion, trailing the $4.590 billion analysts had anticipated, suggesting potential growth challenges ahead.
- Record Gross Margin: The fourth-quarter gross profit margin reached 63.9%, up 180 basis points year-over-year, attributed to operational efficiencies and strong full-price execution, highlighting effective cost management strategies.
- Strong Cash Flow: As of December 31, cash and cash equivalents rose 10.3% year-over-year to 1.019 billion Swiss Francs, with net working capital expanding 14.3%, reflecting a robust financial position for the company.
See More
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- Oil Price Surge: The escalating conflict between the U.S., Israel, and Iran has driven West Texas Intermediate crude oil prices up by 6.4% to $75.8 per barrel, marking the largest two-day rally since March 2022, indicating heightened market concerns over energy supply disruptions.
- Market Panic Intensifies: The CBOE Volatility Index surged by 6% to 22.74, reflecting increased investor fear regarding short-term market volatility, with all 11 S&P 500 sectors trading in the red, showcasing widespread market pressure.
- Fed Policy Expectations Shift: Amid rising inflation fears, the 10-year Treasury yield climbed from 3.97% last Friday to approximately 4.06%, leading traders to reprice expectations for Fed rate cuts, now anticipating fewer chances of cuts in 2026.
- Strong Dollar Impact: The U.S. dollar index is on track for its largest two-day gain since February 2023, resulting in significant declines in gold and silver prices, with spot gold falling 4.6% to around $5,080 per ounce and silver plummeting 7.8% to $82 per ounce, highlighting the dollar's pressure on commodity markets.
See More
On Holding Reports Strong Earnings but Stock Drops
- Significant Sales Growth: On Holding reported a 35.6% year-over-year increase in sales, surpassing 3 billion Swiss francs (approximately $3.84 billion) for the first time, although it fell short of analysts' expectations of 3.7 billion francs, indicating strong market demand but raising investor concerns.
- Profitability Improvement: The company's gross profit margin reached 62.8%, leading the industry and demonstrating high brand value and customer loyalty, allowing it to avoid holiday discounts and maintain profitability, thereby enhancing future market competitiveness.
- Stock Volatility: Despite strong earnings, On Holding's stock dropped as much as 14.3% following the report, with a 6.95% decline as of 2:08 PM, reflecting market caution regarding future growth expectations.
- Investment Opportunity: With the stock down about 10% over the past year, analysts suggest investors consider buying at the current dip, believing On Holding possesses a consumer base and brand recognition akin to global luxury brands, with potential for price and margin increases in the future.
See More
On Holding Reports 35.6% Sales Growth but Stock Drops
- Significant Sales Growth: On Holding reported a 35.6% year-over-year sales increase, surpassing 3 billion Swiss francs (approximately $3.84 billion) for the first time, although it fell short of analysts' expectations of 3.7 billion francs.
- Industry-Leading Profit Margins: The company's gross profit margin rose to 62.8%, positioning it as a leader in the industry, indicating strong brand value and consumer willingness to pay full price, which helped avoid the holiday discount pressures faced by competitors.
- Stock Price Volatility Opportunity: Despite a 14.3% drop in stock price following the earnings report, currently down about 10% from last year, this presents a buying opportunity for investors, especially given its strong brand influence and market recognition.
- Cautious Future Outlook: While revenue is projected to approach 3.5 billion Swiss francs by 2026, the failure to meet market expectations necessitates caution among investors, particularly as analysts did not include it in their list of top investment stocks.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Analysis of Stock Movements for Multiple Companies
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- Pinterest Investment Dynamics: Elliott Management's $1 billion investment in Pinterest aims to accelerate the company's stock buyback program, resulting in a more than 7% increase in Pinterest's stock, reflecting market optimism about its future growth prospects.
- Ziff Davis Transaction Impact: Ziff Davis shares rose 74%, hitting a 52-week high after agreeing to sell its connectivity division to Accenture for $1.2 billion, with the CEO describing the deal as a significant realization of shareholder value, signaling a successful strategic transformation for the company.
- AutoZone Earnings Disappointment: AutoZone's stock fell over 5% following disappointing fiscal second-quarter results, primarily attributed to winter storms and price pressures from tariffs, highlighting the company's vulnerability in adverse conditions.
See More
On Holding Reports Disappointing Q4 Earnings Guidance
- Earnings Beat: On Holding reported adjusted earnings per share of 31 cents for Q4, surpassing the analyst estimate of 18 cents, yet the stock fell 7.46% amid a broader market sell-off, indicating investor concerns.
- Disappointing Revenue Guidance: The company expects fiscal year 2026 net sales to exceed $4.304 billion, trailing the $4.590 billion analysts had anticipated, suggesting potential growth challenges ahead.
- Record Gross Margin: The fourth-quarter gross profit margin reached 63.9%, up 180 basis points year-over-year, attributed to operational efficiencies and strong full-price execution, highlighting effective cost management strategies.
- Strong Cash Flow: As of December 31, cash and cash equivalents rose 10.3% year-over-year to 1.019 billion Swiss Francs, with net working capital expanding 14.3%, reflecting a robust financial position for the company.
See More
Wall Street Plummets Amid Escalating Geopolitical Tensions
- Oil Price Surge: The escalating conflict between the U.S., Israel, and Iran has driven West Texas Intermediate crude oil prices up by 6.4% to $75.8 per barrel, marking the largest two-day rally since March 2022, indicating heightened market concerns over energy supply disruptions.
- Market Panic Intensifies: The CBOE Volatility Index surged by 6% to 22.74, reflecting increased investor fear regarding short-term market volatility, with all 11 S&P 500 sectors trading in the red, showcasing widespread market pressure.
- Fed Policy Expectations Shift: Amid rising inflation fears, the 10-year Treasury yield climbed from 3.97% last Friday to approximately 4.06%, leading traders to reprice expectations for Fed rate cuts, now anticipating fewer chances of cuts in 2026.
- Strong Dollar Impact: The U.S. dollar index is on track for its largest two-day gain since February 2023, resulting in significant declines in gold and silver prices, with spot gold falling 4.6% to around $5,080 per ounce and silver plummeting 7.8% to $82 per ounce, highlighting the dollar's pressure on commodity markets.
See More
On Holding Reports Strong Earnings but Stock Drops
- Significant Sales Growth: On Holding reported a 35.6% year-over-year increase in sales, surpassing 3 billion Swiss francs (approximately $3.84 billion) for the first time, although it fell short of analysts' expectations of 3.7 billion francs, indicating strong market demand but raising investor concerns.
- Profitability Improvement: The company's gross profit margin reached 62.8%, leading the industry and demonstrating high brand value and customer loyalty, allowing it to avoid holiday discounts and maintain profitability, thereby enhancing future market competitiveness.
- Stock Volatility: Despite strong earnings, On Holding's stock dropped as much as 14.3% following the report, with a 6.95% decline as of 2:08 PM, reflecting market caution regarding future growth expectations.
- Investment Opportunity: With the stock down about 10% over the past year, analysts suggest investors consider buying at the current dip, believing On Holding possesses a consumer base and brand recognition akin to global luxury brands, with potential for price and margin increases in the future.
See More
On Holding Reports 35.6% Sales Growth but Stock Drops
- Significant Sales Growth: On Holding reported a 35.6% year-over-year sales increase, surpassing 3 billion Swiss francs (approximately $3.84 billion) for the first time, although it fell short of analysts' expectations of 3.7 billion francs.
- Industry-Leading Profit Margins: The company's gross profit margin rose to 62.8%, positioning it as a leader in the industry, indicating strong brand value and consumer willingness to pay full price, which helped avoid the holiday discount pressures faced by competitors.
- Stock Price Volatility Opportunity: Despite a 14.3% drop in stock price following the earnings report, currently down about 10% from last year, this presents a buying opportunity for investors, especially given its strong brand influence and market recognition.
- Cautious Future Outlook: While revenue is projected to approach 3.5 billion Swiss francs by 2026, the failure to meet market expectations necessitates caution among investors, particularly as analysts did not include it in their list of top investment stocks.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Analysis of Stock Movements for Multiple Companies
- AeroVironment Contract Talks: AeroVironment's stock surged 9% as it continues negotiations with the U.S. Space Force for the SCAR program contract, which had previously been paused for term revisions, indicating the company's growth potential in space and directed energy platforms.
- Pinterest Investment Dynamics: Elliott Management's $1 billion investment in Pinterest aims to accelerate the company's stock buyback program, resulting in a more than 7% increase in Pinterest's stock, reflecting market optimism about its future growth prospects.
- Ziff Davis Transaction Impact: Ziff Davis shares rose 74%, hitting a 52-week high after agreeing to sell its connectivity division to Accenture for $1.2 billion, with the CEO describing the deal as a significant realization of shareholder value, signaling a successful strategic transformation for the company.
- AutoZone Earnings Disappointment: AutoZone's stock fell over 5% following disappointing fiscal second-quarter results, primarily attributed to winter storms and price pressures from tariffs, highlighting the company's vulnerability in adverse conditions.
See More
