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Looking at opinions across Wall Street of lululemon athletica inc. NASDAQ: LULU, it seems clear that the stock is in trouble. Not only do shares have just a single Buy rating compared to 27 total Hold or Sell ratings, but recent weeks have brought an onslaught of lowered price targets and reiterated negative views of the stock. Investors subscribing to these same beliefs might see headwinds like slowing growth in Asia, a major leadership change with a new CEO in September, and poor visibility in the company's attempts at making a turnaround.

Expanding the view to encompass a broader cross-section of the premium athletic and apparel brands space, though, it may become clearer that companies working in the same consumer environment can nonetheless yield totally different results. Investors looking for industry-wide issues might be inclined to view lululemon's company-specific problems as indicative of other concerns, whether or not they actually exist.

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Lululemon’s Turnaround Has Real Problemslululemon athletica Today

LULU

lululemon athletica

$103.19 +2.58 (+2.56%)

As of 09/8/2026 04:00 PM Eastern

$97.99▼

$225.988.45

$116.46

Despite efforts to overcome a number of significant challenges, lululemon has so far struggled to do so. Q2 2026 revenue fell on a year-over-year (YOY) basis, and worse still was the fact that comparable sales were down 10% over the same period. The company's business in China, long seen as a bright spot and potential source of momentum, seemed to falter; China mainland sales climbed by only 4% YOY, which actually reflects a decline of 2% in constant currency.

Add to the mix lowered guidance, inconsistent demand, a 20% YOY decline in leggings sales and a drop in accessories sales that was only slightly better, and some costly PR missteps amid a major leadership transition, and the company's pessimistic analyst rating appears fairly well-deserved.

With a new CEO arriving in September, lululemon faces execution risk with an incoming leader forced to deal with a significantly challenging environment as the company attempts a brand repair.

On Holding Seems to Be in a Similar Boat, But May Present More Reasons for OptimismON Today

$27.25 -0.74 (-2.65%)

As of 09/8/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$27.10▼

$51.0818.54

$46.78

Looking to lululemon's rivals, high-end athletic footwear brand On Holding AG NYSE: ONON would seem to be in a similar situation. Aug. 11, 2026 was the worst trading day in the company's history since going public five years ago, with shares falling by more than 20% in a single trading session.

The plummeting share price coincided with On's recent earnings report, which did see both top- and bottom-line misses relative to analyst predictions of performance. Still, despite these headline disappointments, there are some strong underlying business metrics that may support future growth in a way that distinguishes the company from lululemon.

For one thing, On's direct-to-consumer (DTC) business is thriving. This metric grew by more than 34% at constant currency, reaching nearly 46% of total sales. While lululemon's Asian business is struggling, On's is growing: the Asia-Pacific region contributed more than 20% of worldwide sales for the quarter.

On's gross margin and adjusted EBITDA margin are both expanding, and newer growth areas like apparel are also seeing momentum. This is despite the fact that On's wholesale growth appeared sluggish. The company deliberately limited sell-in for the American market due to certain key considerations about the environment itself and as a way to maintain inventory discipline and build the brand's premium positioning.

Looking beyond the banner performance figures to these details, it may be clearer why insiders are apparently favoring ONON shares again, and why the company's analyst ratings diverge so dramatically from LULU's bearish views.

Amer Sports May Be in a Different Category AltogetherAmer Sports Today

AS

Amer Sports

$28.66 -0.88 (-2.96%)

As of 09/8/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$28.09▼

$42.7630.16

$48.34

If LULU is in a precarious position and ONON has some positive attributes hiding beneath the surface, Amer Sports NYSE: AS may have the strongest argument for its fundamentals of the three firms. With adjusted earnings of 22 cents per share in Q2 2026 and $1.6 billion in revenue—up by an impressive 32% YOY, Amer is impressive across its business: all segments and regions delivered excellent growth. DTC sales growth of 40% YOY was even stronger than On's in this area.

Amer's key brands, including Arc'teryx and Wilson Tennis 360, continue to see strong momentum despite inflationary pressures. What's more, management boosted full-year guidance and now anticipates 24% YOY improvement in revenue. New store locations around the world and particularly in China suggest that lululemon's regional struggles may be unique to that company in particular.

To be sure, Amer still faces some challenges, including tariff concerns, the high cost of freight, and the potential for geopolitical tensions to continue to rise. Still, the company's cheery analyst ratings present it as an under-appreciated alternative to a large firm in the industry that has been struggling.

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Key Takeaways ONON raised its 2026 gross-margin outlook to at least 65% after second-quarter profitability improved.On Holding's DTC sales rose 34.3% at constant currency, reaching 45.7% of second-quarter net sales.ONON expects low-20% 2026 sales growth, while new tariffs and wholesale restraint add execution risk. On Holding AG (ONON - Free Report) raised its 2026 gross-margin outlook after a second quarter marked by 21.6% constant-currency sales growth and wider profitability. The stronger margin view gives investors a clearer measure of the premium model's resilience.

The question is whether that cushion can hold as new U.S. tariffs increase product costs and management restrains wholesale shipments in promotional markets. Those pressures make second-half execution central to the outlook.

ONON Lifts Its 2026 Gross Margin FloorONON raised its full-year gross-margin expectation to at least 65% from at least 64.5%. It maintained adjusted earnings before interest, taxes, depreciation and amortization margin guidance of 19.5%-20%.

The higher gross-margin outlook reflects a richer direct-to-consumer mix, full-price discipline and operating efficiencies. It also excludes potential benefits from anticipated tariff refunds, leaving the operating drivers rather than refunds to support the stated floor.

ONON DTC Growth Is Doing More of the Heavy LiftingDirect-to-consumer sales increased 34.3% at constant currency in the second quarter, compared with 12.7% growth in wholesale. The channel reached 45.7% of net sales, up from 41.1% a year earlier, and management expects it to strongly outperform wholesale in the second half.

That mix shift matters because ONON controls merchandising, pricing and brand presentation more directly in its own channels. Deckers Outdoor Corporation (DECK - Free Report) also saw direct sales outpace wholesale for HOKA in its first quarter of fiscal 2027, with DTC up 17.3% and wholesale up 2.9%.

NIKE, Inc. (NKE - Free Report) showed a different channel pattern in its fiscal 2026 fourth quarter, when currency-neutral wholesale revenues rose 1% and NIKE Direct revenues fell 9%. The contrast highlights how channel execution can meaningfully shape growth and margin outcomes across athletic footwear.

Tariffs Test ONON's Margin ResilienceSecond-quarter gross margin expanded 390 basis points to 65.4%, while adjusted earnings before interest, taxes, depreciation and amortization margin rose to 19.8% from 18.2%. Freight efficiencies, a higher direct-to-consumer mix, premium positioning and favorable foreign exchange more than offset higher U.S. import duties.

The test becomes tougher from here. Additional Section 301 tariffs imposed in July 2026 are expected to increase duties on ONON's products, and the incremental earnings impact was not quantified. Further tariff pressure could require more sourcing, pricing or efficiency offsets to protect profitability.

ONON's Sales Outlook Reflects Wholesale RestraintOn Holding expects full-year 2026 constant-currency net sales growth in the low-20% range. Management deliberately restrained wholesale sell-in during the second quarter and early third quarter to protect channel inventory health and full-price integrity in a promotional marketplace.

That choice supports premium positioning and creates a cleaner runway for upcoming running-product launches, but it sacrifices some near-term volume. If promotions persist, additional shipment restraint could keep wholesale growth below the pace of direct-to-consumer demand.

Image Source: Zacks Investment Research

ONON's Style Signals Add Context to the OutlookThe higher margin floor strengthens the operating case, but tariffs and slower wholesale sell-in leave second-half execution risks intact. Margin durability therefore depends on whether direct-channel mix and efficiencies continue to offset higher product costs without creating a larger sales trade-off.

ONON currently carries a Zacks Rank #4 (Sell). Its Growth Score of A, Momentum Score of A and VGM Score of A point to favorable growth and momentum characteristics, while the Value Score of D is less supportive. Because the Style Scores are designed to complement the Zacks Rank, those A scores do not override the more cautious near-term Rank signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ONON shares fell 27.2% in a month even as sales grew double digits and profitability expanded.ONON restrained wholesale sell-in to protect inventory health and full-price positioning amid promotions.ONON trades at 14.5X forward earnings, while higher tariffs and rising costs add near-term uncertainty. On Holding AG (ONON - Free Report) shares have fallen 27.2% in the past month, putting the stock near the low end of its three-year valuation range. The decline comes even as the company continues to post double-digit sales growth and expanding profitability.

That split matters for investors. The sell-off has reduced a once-richer valuation, but softer wholesale sell-through, higher tariffs and rising operating costs keep the near-term risk-reward from looking straightforward.

Why ONON's Wholesale Discipline MattersSecond-quarter wholesale net sales rose 12.7% at constant currency, well below direct-to-consumer growth of 34.3%. ONON deliberately restrained wholesale sell-in in a promotional multi-brand environment, particularly in the Americas, to protect channel inventory health and full-price positioning.

The choice limits near-term volume while ONON prepares a broader running-product refresh. NIKE, Inc. (NKE - Free Report) reported fiscal 2026 fourth-quarter wholesale revenues up 4% on a reported basis. Deckers Outdoor Corporation (DECK - Free Report) said HOKA brand sales rose 7.7% in its first quarter of fiscal 2027, underscoring continued competition in performance footwear.

ONON's Margins Still Signal Premium Brand StrengthONON's gross margin expanded 390 basis points year over year to 65.4% in the second quarter. Adjusted earnings before interest, taxes, depreciation and amortization margin increased to 19.8% from 18.2%, helped by freight efficiencies, a higher direct-to-consumer mix, premium positioning and favorable foreign exchange, which more than offset higher U.S. import duties.

Direct-to-consumer sales reached 45.7% of quarterly revenues, up from 41.1% a year earlier. Management raised its full-year 2026 gross-margin outlook to at least 65% while maintaining adjusted earnings before interest, taxes, depreciation and amortization margin guidance of 19.5%-20%, keeping margin execution central to the investment case.

Tariffs and Rising Costs Keep Pressure on ONONAdditional Section 301 tariffs imposed by the United States in July 2026 are expected to increase duties on On Holding's products. The incremental earnings impact was not quantified, leaving uncertainty over how much of the added burden can be absorbed through sourcing, pricing and operating efficiencies.

Selling, general and administrative expenses rose 18.5% to CHF 436.3 million in the second quarter, faster than reported net-sales growth of 13.5%. Future payment commitments under signed leases increased to CHF 230.3 million from CHF 153.8 million at year-end 2025, reducing cost flexibility if demand weakens.

ONON Valuation Resets but Is Not an Obvious BargainONON now trades at 14.5X forward 12-month earnings, the bottom of its three-year range of 14.5X to 86.2X and far below the 44.1X median. The month-long sell-off has therefore removed a substantial portion of the stock's historical valuation premium.

The multiple still sits above the Zacks sub-industry level of 12.7X. The Zacks Consensus Estimate for current-fiscal-year earnings has also moved 2.1% lower over the past four weeks, so a cheaper multiple does not by itself settle the valuation debate.

Image Source: Zacks Investment Research

ONON's Signals Still Argue for CautionThe sell-off has made ONON less expensive, but the near-term setup remains mixed. Growth, direct-to-consumer strength and margin expansion support the business profile, while restrained wholesale shipments, tariff uncertainty and rising costs argue against treating the price drop alone as an opportunity.

ONON currently carries a Zacks Rank #4 (Sell). Its VGM Score of A, Growth Score of A and Momentum Score of A point to favorable style characteristics, but the Value Score of D is less supportive. Because the Style Scores are designed to complement the Zacks Rank, they do not override the Rank's more cautious near-term signal.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways On Holding's DTC sales rose 26% to CHF 388.4M, reaching a record 45.7% of second-quarter sales.A richer DTC mix and full-price discipline lifted gross margin by 390 bps to 65.4% despite U.S. tariffs.On Holding expects DTC to outpace wholesale in the second half and sees 2026 gross margin at least 65%. On Holding AG’s (ONON - Free Report) direct-to-consumer (DTC) momentum is reinforcing its premium business model. In second-quarter 2026, DTC sales climbed 26% year over year to CHF 388.4 million or 34.3% at constant currency. The channel accounted for a second-quarter record 45.7% of total sales, up from 41.1% a year earlier.

The strength extended across e-commerce and company-owned stores. Online growth exceeded management’s expectations in every region, while the share of full-price sales increased year over year. Higher traffic and transactions, alongside store expansion, supported DTC growth. Strong comparable-store sales and standout performances in Paris and Tokyo further underscored demand.

The shift toward On Holding’s highest-margin channel is supporting profitability. A richer DTC mix, full-price discipline and operational efficiencies helped lift gross margin by 390 basis points to 65.4%, despite higher U.S. import tariffs. Adjusted EBITDA margin expanded to 19.8% from 18.2%, supporting investment in innovation, digital capabilities and premium consumer experiences.

DTC outperformed wholesale in every region, highlighting the strength of On Holding’s direct consumer relationships. Wholesale sales grew 4.8%, reflecting softer demand for some everyday running franchises and deliberate shipment restraint. By limiting inventory buildup in a promotional marketplace, On Holding is protecting full-price positioning, which remains central to its premium strategy.

On Holding expects DTC sales growth to strongly outpace wholesale in the second half of 2026. Management raised its full-year gross margin outlook to at least 65%, while maintaining adjusted EBITDA margin guidance of 19.5-20%. Sustained direct-channel demand and disciplined distribution reinforce On Holding’s premium positioning and support profitable growth.

DECK & WWW’s DTC Picture vs. ONONDeckers Outdoor Corporation (DECK - Free Report) delivered strong DTC momentum in the first quarter of fiscal 2027, with total DTC sales increasing 13% year over year. The company’s DTC growth was led by HOKA, where global DTC revenues rose 17%, while UGG DTC increased 6%. DECK benefited from strong full-price demand, product innovation and disciplined inventory management, supporting higher gross margins. For fiscal 2027, Deckers expects to continue driving significant DTC growth, with management indicating no significant change in the channel’s trajectory. DECK views DTC as a key growth engine, supported by expanding international reach, new products and greater consumer engagement.

Wolverine World Wide (WWW - Free Report) saw DTC revenues remain approximately flat year over year in the second quarter of 2026, despite 8% wholesale growth. WWW is making DTC a significant focus, with Saucony showing good DTC growth while Merrell is being repositioned toward a higher full-price mix and less promotional activity. Wolverine is investing in stronger online storytelling and more targeted marketing across the consumer funnel. Management acknowledged that more work remains but is taking steps to improve DTC performance, particularly ahead of the holiday season.

ONON’s Price Performance, Valuation & EstimatesOn Holding’s shares have lost 25.6% over the past three months compared with the industry’s 7.2% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, ONON trades at a trailing price-to-sales ratio of 2.12, above the industry’s average of 1.40. It has a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ONON’s fiscal 2026 earnings implies year-over-year growth of 78.4%, whereas the same for fiscal 2027 indicates an uptick of 16.1%. Estimates for fiscal 2026 have been revised upward by 1 cent, while those for fiscal 2027 have remained unchanged over the past seven days.

Image Source: Zacks Investment Research

On Holding currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Olivier's direct stake now totals 5.2 million shares valued at $168.5 million, executed at $30.67 per share as stock closed above entry price.

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Stock to Watch: On Holding (ONON - Free Report) ON Holding AG is a Switzerland-based premium sportswear company that designs and sells high-performance footwear, apparel, and accessories. Founded in the Swiss Alps in 2010, the company has built its brand around technical innovation, premium design and sustainability, guided by its mission to “ignite the human spirit through movement.” Initially focused on running, ON has expanded into outdoor, training, tennis and all-day lifestyle categories while maintaining a single-brand operating model. 

ONON is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. ONON has a Growth Style Score of A, forecasting year-over-year earnings growth of 81.4% for the current fiscal year.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.76 per share. ONON boasts an average earnings surprise of +25.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ONON should be on investors' short list.

ON Holding A G reported strong Q2 results but cut full-year revenue growth guidance from 23% to ~20%, triggering a 20% stock drop. I upgrade ONON from Sell to Hold, citing robust margin expansion and a net cash balance, but caution on slowing growth and high valuation. ONON's DTC strategy boosted gross margin to 65.4% and net margin to 12.4%, but growth now relies heavily on APAC expansion.

On Holding (NYSE:ONON) shares fell 19% after the company reported second-quarter net sales below expectations and issued full-year growth guidance at the lower end of forecasts, overshadowing strong direct-to-consumer growth and an expansion in gross profit margin.

The Swiss sportswear company reported second-quarter net sales of CHF 850.3 million, up 13.5% from a year earlier, but below expectations of about CHF 878 million. On a constant-currency basis, sales increased 21.6%.

Adjusted earnings per share came in at CHF 0.35, slightly above expectations of about CHF 0.34.

Direct-to-consumer (DTC) sales increased 26% to CHF 388.4 million, or 34.3% on a constant-currency basis. Wholesale sales rose 4.8% to CHF 461.9 million, with constant-currency growth of 12.7%.

By region, sales in EMEA increased 15.4% to CHF 228.2 million, while sales in the Americas rose 4.5% to CHF 451.6 million. Asia-Pacific sales increased 43.1% to CHF 170.5 million. On a constant-currency basis, growth in the three regions was 20.5%, 13.0% and 54.7%, respectively.

Gross profit increased 20.6% to CHF 555.7 million, while gross profit margin expanded to 65.4% from 61.5% a year earlier.

On reported net income of CHF 105.0 million, compared with a net loss of CHF 40.9 million in the prior-year quarter. Net income margin was 12.3%, compared with negative 5.5% a year earlier. Basic and diluted Class A earnings per share were CHF 0.31, compared with a loss of CHF 0.12 per share in the year-ago period.

Adjusted EBITDA increased 23.5% to CHF 168.1 million from CHF 136.1 million, while adjusted EBITDA margin rose to 19.8% from 18.2%. Adjusted net income was CHF 117.6 million, compared with an adjusted net loss of CHF 29.7 million a year earlier. Adjusted basic and diluted Class A EPS was CHF 0.35, compared with a loss of CHF 0.09.

David Allemann, founder and co-CEO of On, said the results reflected sales growth across markets, expansion of the company's own channels and a higher gross profit margin.

"We are proving that a brand can achieve global scale without compromising its premium brand positioning," Allemann said.

Looking ahead, On said it was approaching the second half of 2026 with a focus on its premium growth model. The company said direct-to-consumer momentum remained strong, while it was deliberately managing wholesale sell-in to protect full-price integrity in a promotional marketplace.

For full-year 2026, On expects net sales to grow in the low-20% range on a constant-currency basis, with DTC sales expected to strongly outperform wholesale in the second half. At current spot rates, the company said that outlook implies absolute net sales of CHF 3.47 billion to CHF 3.56 billion.

The guidance excludes any benefits from anticipated tariff refunds in the second half of the year.

Jefferies wrote that the second-quarter results showed a global wholesale channel that is moderating, particularly in the US, while SG&A costs are accelerating to drive new customers into the DTC funnel as core customer retention wanes.

The firm noted that while gross margin had improved, it did not view the expansion as sustainable as the business slows, while also pointing to what it described as a heavy inventory balance sheet.

"We see USA business decelerating significantly in 2027 while SG&A costs keep rising and gross margin percentage fades, which means negative revisions ahead," Jefferies wrote. "Stock will stay under pressure, and we remain the only ‘Underperform’ rating on the Street."

These 3 Beaten-Down Stocks Just Saw $25 Million in Insider BuyingON NYSE: ONON reported second-quarter 2026 net sales of CHF 850 million, up 21.6% at constant currency and 13.5% on a reported basis, as direct-to-consumer demand outpaced growth in its wholesale business. The Swiss sportswear company also raised its full-year gross-margin outlook while maintaining its adjusted EBITDA-margin forecast.

Founder and Co-CEO David Allemann said the company is prioritizing long-term premium positioning over short-term volume growth, particularly in wholesale channels where it has seen softer sell-through in some everyday running franchises. “We choose not to build in-channel inventory that could compromise our full price integrity,” Allemann said.

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On Holdings Sets Up for Marathon Rally: New Highs Are ComingOn said it expects full-year constant-currency net sales growth in the low 20% range, a forecast that reflects deliberate limits on wholesale sell-in during the second and third quarters. The company expects direct-to-consumer momentum to remain strong through the rest of the year.

Direct-to-Consumer Channel Drives Growth Direct-to-consumer sales reached CHF 388 million in the second quarter, rising 34.3% at constant currency and 26.0% on a reported basis. The channel accounted for 45.7% of quarterly sales, supported by growth in both e-commerce and physical retail.

Down 75% From Its High, How Much Lower Can Nike Get?CFO Frank Sluis said e-commerce growth exceeded the company’s expectations in every region. On also reported continued strength in its retail fleet, including its Champs-Élysées flagship in Paris, which was its best-performing store globally during the quarter. Its two Tokyo locations continued to perform strongly, Sluis said, with no signs of cannibalization between the stores.

In the Americas, net sales rose 13.0% at constant currency, while EMEA sales increased 20.5% and APAC sales grew 54.7%. Sluis said the Americas result reflected the company’s wholesale actions, while direct-to-consumer momentum accelerated in both North America and Latin America.

EMEA benefited from growth across sub-regions, including France, Spain and Italy. In APAC, Japan, Korea and Greater China all performed well, according to management. The company said its Greater China operations exceeded expectations across channels despite its decision not to participate in promotional activity on Tmall.

Wholesale Discipline and Product Pipeline Wholesale revenue increased 12.7% at constant currency and 4.8% on a reported basis. Management said the slower growth was concentrated primarily in the Americas, where a promotional multibrand market affected sell-through of certain everyday running products.

Sluis said the company chose to restrain shipments to wholesale partners rather than add inventory to the channel. He said On was satisfied with wholesale sell-through outside the Americas and characterized the U.S. weakness as transitory.

The company pointed to several new and upcoming product releases as part of its effort to support future wholesale growth. These include the CloudX 5 and Cloudrunner Max, which Sluis said had begun the third quarter well, as well as the Cloudsurfer 3, scheduled to begin rolling out to run specialty partners in October before a broader January launch. On also plans to release the Cloudsurfer Max 2 in April and relaunch the Cloudflow franchise.

Management said all of its everyday running franchises are expected to transition to updated foams, technologies and fit engineering within the next 14 months. The company also highlighted its LightSpray footwear technology, which it said is scaling from facilities in Busan and Zurich.

Apparel, Training and Lifestyle Categories Expand Footwear sales rose 18.9% at constant currency during the quarter, while apparel sales increased 56.2%. Sluis said apparel is increasingly becoming both a growth driver and an entry point for consumers new to the brand.

The company cited growth in performance running collections, its Volt apparel line and its Tennis Court collection. Management said the Zendaya co-created collection significantly exceeded expectations, with every U.S. style outperforming forecasts by triple digits.

On also reported strong growth in newer sports categories. Allemann said training grew 40%, while tennis was the company’s fastest-growing apparel vertical, with sales nearly tripling during the quarter. The Cloudtilt lifestyle franchise grew 190% year over year, and the company said its Cloudpillow models held three of the five top-selling positions at Foot Locker Europe in the prior quarter.

Management said consumers under age 34 now represent more than one-third of On’s customer base. Brand awareness increased to 30%, according to Allemann.

Margins, Cash Position and Outlook Gross margin reached 65.4% in the second quarter, while adjusted EBITDA margin was 19.8%. Sluis attributed the gross-margin performance to full-price execution, a higher direct-to-consumer mix, operating efficiencies, favorable freight mix and positive foreign-exchange effects. The company said it absorbed higher U.S. import tariffs during the quarter without tariff refunds.

On now expects full-year gross margin of at least 65%, up from its prior outlook of 64.5%, while maintaining its adjusted EBITDA-margin forecast of 19.5% to 20%. Sluis said the higher gross-margin outlook is primarily tied to an anticipated increase in the direct-to-consumer mix. The EBITDA-margin outlook was maintained as the company plans to continue investing in marketing, digital initiatives, retail expansion and future growth.

The company said it expects to recognize some tariff refunds in third-quarter results but has not included potential benefits from those refunds in its margin outlook.

On ended the quarter with more than CHF 1.2 billion in net cash after its cash balance increased CHF 185.2 million. Net working capital improved by CHF 14.9 million from the first quarter, while capital expenditures totaled CHF 28.2 million, primarily for retail expansion and growth infrastructure.

The company plans to host its 2026 Investor Day in Zurich on Sept. 21 and 22.

About ON (NYSE:ONON)On Holding AG, commonly known as On, is a Swiss performance footwear and apparel company headquartered in Zurich. Founded in 2010, the company designs, develops and sells running shoes, performance apparel and accessories for road, trail and everyday use. On’s product philosophy centers on engineered cushioning and responsiveness intended to serve both serious athletes and lifestyle consumers.

On is best known for its proprietary midsole technology and distinctive sole architecture, marketed under names such as the Cloud family of shoes and related performance lines.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Should You Invest $1,000 in ON Right Now?Before you consider ON, you'll want to hear this.

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Footwear and athletic apparel stocks like Nike (NKE -1.88%), Lululemon Athletica (LULU -1.71%), Deckers (DECK -3.69%), and On Holding (ONON -20.29%) have all gotten crushed in recent months as sales growth has slowed across the sector.

As you can see from the chart below, which shows how far each stock is down from its high, all four are down more than 50% from their all-time highs, showing the entire sector is suffering.

NKE data by YCharts

A number of factors have weighed on the sector, including persistent inflation, which is driving weaker discretionary spending, tariffs in the U.S., and the end of pandemic tailwinds that drove spending on comfort apparel and footwear.

However, with sell-offs come opportunity, and these footwear stocks are generally trading at attractive multiples. Let's take a look at the best buys today, ranked from worst to best.

Image source: Getty Images.

Nike's collapse has been the most painful of any of these stocks. Not only is Nike down more than 75% from its pandemic-era peak, but the stock has also fallen over the last decade, while the S&P 500 has roughly tripled, a remarkable destruction of value by a well-regarded blue chip stock.

Most of Nike's problems can be traced to former CEO John Donahoe, who overemphasized the direct-to-consumer channel while neglecting the wholesale business, and overrelied on legacy styles rather than investing in innovation. However, new CEO Elliott Hill, a longtime exec with the company, has now been at the helm for nearly two years, but his turnaround efforts have yet to pay off, and the stock has continued to slump.

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Nike projected a return to gross margin expansion in the December quarter of this year. That could herald a turnaround, but at this point, the stock deserves to be in the penalty box.

3. Lululemon As you can see from the chart above, Lululemon has followed a similar trajectory to Nike over the last few years. In fact, it's down even more during that period.

Lululemon was once growing rapidly and priced at a premium, but the stock has plunged as the company faces more competition, its styles in some areas have become lackluster, and it's been hurt by tariffs, including the removal of the de miminis exemption.

Lululemon has continued to deliver strong growth in international markets, including China, a rare bright spot, but comparable sales in the Americas segment have been falling for several quarters.

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The company is bringing in a new CEO in September, Heidi O'Neill, a longtime executive at Nike, who could help drive a turnaround.

Lululemon is clearly struggling at this point, but the stock is a better buy than Nike due to its international growth and its price-to-earnings ratio of just 11.

2. Deckers Like Lululemon, Deckers has been a top performer over its history, but its growth has slowed recently, facing similar headwinds related to discretionary spending and tariffs. The Hoka running shoe brand, which had delivered soaring growth for several years, is now moderating, and the Ugg brand remains a powerhouse but is only growing modestly.

Still, beyond slowing growth, there don't appear to be any red flags for Deckers, and it raised its guidance in the first quarter to earnings per share of $7.35-$7.50 for the full year.

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Deckers is also taking advantage of the discount in the stock price by buying back shares, and it's lowered shares outstanding by 7% over the last year, a trend that will certainly pay off if it keeps it up. Deckers looks primed for an eventual recovery at a price-to-earnings ratio of just 13.

1. On Holdings Finally, On Holdings, which just reported second-quarter earnings Tuesday morning, looks like the best buy of the bunch.

That stock has pulled back as sales growth has slowed due to a stronger Swiss franc and as the company has focused more on margin expansion rather than revenue growth.

Nonetheless, revenue growth remains strong at more than 20% on a currency-neutral basis in the second quarter, and its gross margins are impressive, clocking in at 65.4% in the second quarter, about as high a gross margin as you'll find in the consumer goods sector, on par even with some luxury goods stocks.

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On's focus on margins over growth is reminiscent of the typical luxury strategy, and any continued margin expansion should drive the stock higher.

Meanwhile, the stock looks well-priced after the pullback, trading at a P/E of just 22. If it can maintain its current growth rate, the stock should bounce higher from here.

On Holding (ONON) is experiencing a significant decline in stock price today, following its Q2 earnings report. The company reported a rare top-line miss and sl

On Holding AG (ONON) Q2 2026 Earnings Call Transcript

On Holding (ONON), the Swiss premium footwear and sportswear company, delivered plenty of growth in the second quarter. Wall Street still hated it. Shares crash

On Holding's quarterly revenue fell short of Wall Street expectations, triggering a sharp sell-off in its shares, as higher US tariff costs and cautious consumer spending weighed on the premium sportswear maker's performance.

The Roger Federer-backed company reported second-quarter net sales below analysts' estimates on Tuesday, sending its shares ONON down 19%.

The Zurich-based company has now lost about a third of its market value so far this year as investors assess slowing growth prospects despite continued gains in market share from larger rivals Nike and Adidas.

Asia and apparel remain bright spotsFor the quarter ended June 30, On reported net sales of 850.3 million Swiss francs ($1.05 billion), missing analysts' consensus estimate of 878.16 million francs.

The company nevertheless continued to post robust growth in key international markets.

Asia-Pacific contributed more than one-fifth of total sales for another consecutive quarter, supported by strong momentum in Japan, South Korea and Greater China.

Its apparel business also stood out, with constant-currency net sales rising 56.2% during the quarter.

However, those gains were insufficient to offset softer overall revenue performance amid a challenging macroeconomic backdrop.

Adjusted earnings came in slightly ahead of expectations, with profit of 0.35 Swiss francs per share compared with analysts' estimate of 0.34 francs.

Executives said the company would continue to protect its premium brand image rather than pursue aggressive discounting to boost volumes.

"We are not sprinting for short-term volume. We are deliberately engineering for the multi-decade value of a premium brand," co-CEO David Allemann said during the post-earnings conference call.

On raised its full-year gross profit margin forecast to at least 65%, up from its previous guidance of 64.5%.

It also widened its full-year net sales guidance to between 3.47 billion and 3.56 billion Swiss francs on a constant-currency basis.

However, the company now expects constant-currency sales growth in the low-20% range, down from its earlier forecast of at least 23%.

The revised outlook also trails the 24.7% consensus estimate cited by Citi.

Based on current exchange rates, the company's projected sales range also came in below the market expectation of 3.56 billion francs.

Citi analysts said management's decision to limit wholesale shipments in order to preserve full-price selling and prepare for future product launches could weigh on second-half sales and pressure the stock.

The stock has fallen 33% this year.

Jefferies analyst Randal Konik also cautioned that recent margin improvements may prove difficult to sustain as revenue growth slows and inventories remain elevated, increasing the likelihood of downward earnings estimate revisions in the coming quarters.

On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”), has announced its financial results

Posted by Defense World Staff on Aug 11th, 2026

On Holding AG (NYSE:ONON – Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 14,282 call options on the stock. This represents an increase of approximately 49% compared to the typical volume of 9,607 call options.

ON Price Performance Shares of ON stock opened at $38.79 on Tuesday. The firm has a market cap of $24.75 billion, a PE ratio of 41.71, a P/E/G ratio of 0.69 and a beta of 2.12. ON has a twelve month low of $31.41 and a twelve month high of $52.20. The company has a quick ratio of 2.39, a current ratio of 2.98 and a debt-to-equity ratio of 0.26. The business has a 50-day moving average price of $37.31 and a 200 day moving average price of $38.91.

ON (NYSE:ONON – Get Free Report) last issued its quarterly earnings results on Tuesday, May 12th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.11. ON had a return on equity of 15.72% and a net margin of 7.92%.The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter in the prior year, the business posted $0.21 earnings per share. ON’s revenue for the quarter was up 14.5% on a year-over-year basis. Sell-side analysts predict that ON will post 1.52 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In A number of equities research analysts have commented on the company. Wall Street Zen cut ON from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. UBS Group dropped their price target on ON from $85.00 to $82.00 and set a “buy” rating on the stock in a research note on Wednesday, July 29th. Barclays dropped their price objective on shares of ON from $57.00 to $46.00 and set an “overweight” rating on the stock in a report on Wednesday, May 13th. KeyCorp reiterated an “overweight” rating on shares of ON in a report on Monday. Finally, Truist Financial cut their price target on ON from $55.00 to $48.00 and set a “buy” rating on the stock in a research report on Tuesday, May 12th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, ON currently has a consensus rating of “Moderate Buy” and a consensus target price of $53.84.

Check Out Our Latest Report on ONON

Insider Activity at ON In other ON news, insider Olivier Bernhard purchased 60,000 shares of ON stock in a transaction dated Thursday, May 14th. The shares were acquired at an average cost of $36.63 per share, with a total value of $2,197,800.00. Following the completion of the transaction, the insider owned 5,163,184 shares in the company, valued at approximately $189,127,429.92. This trade represents a 1.18% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO David Michael Allemann acquired 60,000 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were acquired at an average price of $36.63 per share, with a total value of $2,197,800.00. Following the acquisition, the chief executive officer owned 2,841,108 shares in the company, valued at approximately $104,069,786.04. The trade was a 2.16% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 180,000 shares of company stock valued at $6,594,000 over the last 90 days.

Institutional Investors Weigh In On ON A number of large investors have recently modified their holdings of the business. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in shares of ON by 54.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 177,200 shares of the company’s stock valued at $8,320,000 after acquiring an additional 62,500 shares during the period. One Capital Management LLC acquired a new stake in shares of ON in the fourth quarter valued at $8,887,000. RFG Advisory LLC acquired a new stake in ON in the 4th quarter valued at about $1,343,000. Norges Bank purchased a new position in ON in the fourth quarter worth approximately $128,826,000. Finally, Impax Asset Management Group plc lifted its stake in ON by 79.8% in the fourth quarter. Impax Asset Management Group plc now owns 92,209 shares of the company’s stock worth $4,286,000 after acquiring an additional 40,935 shares during the last quarter. Hedge funds and other institutional investors own 36.39% of the company’s stock.

About ON (Get Free Report)

On Holding AG, commonly known as On, is a Swiss performance footwear and apparel company headquartered in Zurich. Founded in 2010, the company designs, develops and sells running shoes, performance apparel and accessories for road, trail and everyday use. On’s product philosophy centers on engineered cushioning and responsiveness intended to serve both serious athletes and lifestyle consumers.

On is best known for its proprietary midsole technology and distinctive sole architecture, marketed under names such as the Cloud family of shoes and related performance lines.

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In the latest trading session, On Holding (ONON - Free Report) closed at $38.19, marking a +1.54% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.83%.

Coming into today, shares of the running-shoe and apparel company had gained 2.7% in the past month. In that same time, the Retail-Wholesale sector gained 7.52%, while the S&P 500 gained 3.52%.

The investment community will be paying close attention to the earnings performance of On Holding in its upcoming release. The company is slated to reveal its earnings on August 11, 2026. The company is forecasted to report an EPS of $0.43, showcasing a 490.91% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.11 billion, indicating a 22.61% growth compared to the corresponding quarter of the prior year.

ONON's full-year Zacks Consensus Estimates are calling for earnings of $1.76 per share and revenue of $4.5 billion. These results would represent year-over-year changes of +81.44% and +23.57%, respectively.

It is also important to note the recent changes to analyst estimates for On Holding. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.57% fall in the Zacks Consensus EPS estimate. On Holding presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, On Holding is holding a Forward P/E ratio of 21.39. For comparison, its industry has an average Forward P/E of 17.56, which means On Holding is trading at a premium to the group.

Investors should also note that ONON has a PEG ratio of 0.6 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 98, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Key Takeaways On Holding beat Q1 earnings and sales estimates as adjusted EBITDA rose 45.4% and margin reached 21%.ONON raised full-year gross margin guidance to at least 64.5% despite higher U.S. import duties.On Holding expects at least 23% constant-currency sales growth, led by DTC, Asia-Pacific and apparel. On Holding AG (ONON - Free Report) delivered better-than-expected first-quarter 2026 results as revenue growth, earnings expansion and margin gains reinforced the strength of its premium strategy. The quarter also increased investor attention on whether this pace of execution can continue.

Management maintained its sales-growth target and raised profitability expectations despite tariff pressure. Direct-to-consumer momentum, international expansion and category growth provide additional support, although sustained execution remains important.

ONON Q1 Results Show Strong ExecutionOn reported adjusted earnings of 47 cents per share, above the Zacks Consensus Estimate of 35 cents. Net sales of $1.06 billion also surpassed the consensus mark of $1.05 billion. In Swiss francs, net sales rose 14.5% to CHF 831.9 million and increased 26.4% at constant currency.

Profitability improved faster than revenue. Adjusted earnings per Class A share increased to CHF 0.37 from CHF 0.21, while adjusted net income rose 75.2% to CHF 123.6 million. Adjusted EBITDA advanced 45.4% to CHF 174.3 million, and its margin expanded 450 basis points to 21%.

On Holding Margins Improve Despite TariffsGross margin increased 430 basis points to 64.2% even as higher U.S. import duties remained a headwind. Supply measures contributed about 250 basis points of improvement, while full-price execution added roughly 150 basis points. Lower air freight, sourcing gains and pricing discipline also supported the result.

Management now expects full-year gross margin of at least 64.5%. The forecast includes a 20% incremental tariff rate on products imported into the United States from Vietnam and excludes potential refunds. The raised outlook suggests that operational initiatives are offsetting part of the external cost pressure.

ONON DTC Growth Improves Business QualityDirect-to-consumer sales rose 16.4% to CHF 322.3 million and increased 28.7% at constant currency, outpacing wholesale growth. DTC represented 38.7% of net sales compared with 38.1% a year earlier, supported by higher traffic, more transactions and retail expansion.

Greater DTC penetration gives On more control over merchandising, brand presentation and consumer relationships. Stores in Miami, Milan and Tokyo continued to generate comparable growth, while planned locations in San Francisco, Stockholm and São Paulo should extend the premium retail network. NIKE, Inc. (NKE - Free Report) is also investing across direct and wholesale channels, underscoring the competitive importance of an integrated marketplace.

On Holding Guidance Highlights Future GrowthOn continues to expect at least 23% constant-currency net sales growth in 2026, implying reported sales of at least CHF 3.51 billion at current exchange rates. Adjusted EBITDA margin is projected at 19.5%-20%, allowing for continued investment in product innovation, retail and brand building.

Management expects DTC, Asia-Pacific and apparel to outperform the broader business. Asia-Pacific sales increased 61.4% at constant currency in the first quarter, while apparel advanced 57.5%. adidas AG (ADDYY - Free Report) reported double-digit 2025 growth in both footwear and apparel, showing that competition remains active across the same performance and lifestyle categories.

Image Source: Zacks Investment Research

ONON Ratings Reflect Earnings MomentumThe bottom line is that On’s quarter combined an earnings beat, faster profit growth and a higher margin outlook. Continued gains in DTC, apparel and Asia-Pacific could support the growth case, but tariff exposure and elevated investment needs still require disciplined execution.

ONON currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-estimate outlook. Its Growth Score of A reflects favorable growth characteristics, while the Momentum Score of C points to a more balanced price-and-estimate trend. Together, the ratings support a measured view of the earnings-driven opportunity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The market expects On Holding (ONON - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 11. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis running-shoe and apparel company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +490.9%.

Revenues are expected to be $1.11 billion, up 22.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.45% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for On Holding?For On Holding, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -6.43%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that On Holding will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that On Holding would post earnings of $0.35 per share when it actually produced earnings of $0.47, delivering a surprise of +34.29%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

On Holding doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Retail - Apparel and Shoes industry, On Holding (ONON - Free Report) , is soon expected to post earnings of $0.43 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +490.9%. Revenues for the quarter are expected to be $1.11 billion, up 22.6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for On Holding has been revised 1.4% down to the current level. Nevertheless, the company now has an Earnings ESP of -6.43%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that On Holding will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

On Holding (ONON - Free Report) ended the recent trading session at $37.89, demonstrating a +2.24% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.

Prior to today's trading, shares of the running-shoe and apparel company had gained 4.63% outpaced the Retail-Wholesale sector's gain of 0.85% and the S&P 500's gain of 1.7%.

Market participants will be closely following the financial results of On Holding in its upcoming release. The company's upcoming EPS is projected at $0.43, signifying a 490.91% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.11 billion, reflecting a 22.61% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and revenue of $4.5 billion, which would represent changes of +81.44% and +23.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for On Holding. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.21% higher within the past month. On Holding is currently a Zacks Rank #3 (Hold).

In terms of valuation, On Holding is currently trading at a Forward P/E ratio of 21.08. This indicates a premium in contrast to its industry's Forward P/E of 16.65.

Meanwhile, ONON's PEG ratio is currently 0.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.25.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

On Holding (ONON - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this running-shoe and apparel company have returned +4%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Retail - Apparel and Shoes industry, which On Holding falls in, has lost 2.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

On Holding is expected to post earnings of $0.43 per share for the current quarter, representing a year-over-year change of +490.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $1.77 points to a change of +82.5% from the prior year. Over the last 30 days, this estimate has changed +1.8%.

For the next fiscal year, the consensus earnings estimate of $2.15 indicates a change of +21.6% from what On Holding is expected to report a year ago. Over the past month, the estimate has changed +0.9%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for On Holding.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For On Holding, the consensus sales estimate for the current quarter of $1.12 billion indicates a year-over-year change of +23.2%. For the current and next fiscal years, $4.51 billion and $5.44 billion estimates indicate +23.9% and +20.7% changes, respectively.

Last Reported Results and Surprise HistoryOn Holding reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $0.47 for the same period compares with $0.23 a year ago.

Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of +0.86%. The EPS surprise was +34.29%.

Over the last four quarters, On Holding surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

On Holding is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about On Holding. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

On Holding (ONON - Free Report) closed the most recent trading day at $36.77, moving +1.07% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.

The stock of running-shoe and apparel company has fallen by 4.26% in the past month, lagging the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 1.13%.

Market participants will be closely following the financial results of On Holding in its upcoming release. The company is expected to report EPS of $0.44, up 500% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.12 billion, showing a 23.83% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.77 per share and a revenue of $4.53 billion, demonstrating changes of +82.47% and +24.42%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for On Holding. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.83% higher within the past month. On Holding is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, On Holding is presently being traded at a Forward P/E ratio of 20.51. This expresses a premium compared to the average Forward P/E of 16.12 of its industry.

Meanwhile, ONON's PEG ratio is currently 0.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

On Holding (ONON - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this running-shoe and apparel company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for On Holding is 64.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 82.8% this year, crushing the industry average, which calls for EPS growth of 17.4%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for On Holding is 2.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of -2.4%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 90% over the past 3-5 years versus the industry average of 14.2%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for On Holding. The Zacks Consensus Estimate for the current year has surged 2.8% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made On Holding a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions On Holding well for outperformance, so growth investors may want to bet on it.

On Holding (ONON - Free Report) ended the recent trading session at $37.07, demonstrating a +1.34% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.

The running-shoe and apparel company's shares have seen a decrease of 7.97% over the last month, not keeping up with the Retail-Wholesale sector's loss of 7.87% and the S&P 500's loss of 1.42%.

The investment community will be closely monitoring the performance of On Holding in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.43, marking a 490.91% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.13 billion, showing a 24.26% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.75 per share and revenue of $4.53 billion, which would represent changes of +80.41% and +24.54%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for On Holding. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. On Holding is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that On Holding has a Forward P/E ratio of 20.9 right now. This signifies a premium in comparison to the average Forward P/E of 15.96 for its industry.

Investors should also note that ONON has a PEG ratio of 0.6 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.29.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ONON in the coming trading sessions, be sure to utilize Zacks.com.

In the latest close session, On Holding (ONON - Free Report) was down 6.87% at $36.21. The stock's performance was behind the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%.

The running-shoe and apparel company's shares have seen a decrease of 2.34% over the last month, surpassing the Retail-Wholesale sector's loss of 4.65% and falling behind the S&P 500's gain of 2.02%.

Market participants will be closely following the financial results of On Holding in its upcoming release. On that day, On Holding is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 481.82%. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 24.26% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.73 per share and revenue of $4.53 billion. These totals would mark changes of +78.35% and +24.54%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for On Holding. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, On Holding possesses a Zacks Rank of #3 (Hold).

Looking at valuation, On Holding is presently trading at a Forward P/E ratio of 22.44. This represents a premium compared to its industry average Forward P/E of 16.63.

Meanwhile, ONON's PEG ratio is currently 0.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.35.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.