There are numerous reasons why the On Holding’s (NYSE: ONON) 2025 sell-off was irrational, but the three that stand out are the first, second, and third time it raised guidance this fiscal year. Valuation was a concern; the stock traded at approximately 100 times its current-year earnings—an astronomical multiple. However, the multiple was pricing in a robust growth outlook that proved to be cautious.
In this scenario, the stock price can easily rebound to retest its prior highs and is likely to continue rising in 2026. That’s because the company is firing on all cylinders, delivering industry-leading growth as it takes share from key retail competitors such as Nike (NYSE: NKE) and Lululemon (NASDAQ: LULU).
