As Deckers Outdoor strides into new-high ground, Swiss shoemaker On Holding continues to deliver eye-catching growth. Partnerships with retired tennis legend Roger Federer, 2023 French Open champion Iga Swiatek and rising American star Ben Shelton, have ONON stock taking a swing at a new buy point.
In IBD Stock Checkup, On Holding tops its industry peers with a 97 Composite Rating. ONON stock popped back above its 50-day moving average Monday to kick off the new week. Volume is trending more than twice its daily average.
The company's strong technical action and fundamental growth have earned On Holding a spot on IBD Leaderboard. Hailing from the Class of 2021 top IPOs, ONON stock also makes the IPO Leaders list.
ONON Stock Laces To Run As It Leads Group
Led by three stocks with a 90 or higher Composite Rating, the Apparel-Shoes & Related Manufacturing group ranks No. 71 among the 197 industries IBD tracks.
In addition to ONON stock, Deckers and Crocs have made their way into the top 10% of all stocks in terms of the most important stock-picking factors.
Skechers and Weyco, which designs and distributes footwear in the U.S. and Europe, have also established footprints in the top 20% of all stocks.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| On Holding | ONON | 97 | 80 | 93 | B | A | B |
| Deckers Outdoor | DECK | 96 | 98 | 93 | B | A | C |
| Crocs | CROX | 94 | 98 | 89 | B | A | C- |
| Skechers | SKX | 88 | 68 | 88 | B | B | C |
| Weyco | WEYS | 83 | 57 | 70 | B | A | B+ |
On Holding On Pace For 169% Growth This Year
Now operating in over 60 countries, On Holding has built a track record of industry-disrupting innovation in premium footwear, apparel, and accessories for high-performance running, outdoor and all-day activities.
Its award-winning CloudTec has garnered accolades for innovative design and groundbreaking strides across its fast-growing global fan base. Federer has played his part, helping the firm launch eco-friendly sneakers made from vegan leather.
Closing in on the two-year anniversary of its September 2021 IPO, On Holding keeps pumping out impressive top- and bottom-line growth.
On May 16, the company reported Q1 results, serving up 203% earnings growth to 16 cents a share. While consensus estimates call for a 38% EPS slowdown in Q2, Wall Street forecasts a 169% gain for the full year.
On the revenue side, On Holding has generated growth ranging from 42% to 110% over the last eight quarters. In the first quarter this year, it delivered $459.3 million in sales, an 80% year-0ver-year gain. The company forecasts full-year revenue of $1.95 billion, slightly above the $1.87 billion consensus.
The shoemaker has molded average annual sales growth of 71% over the last three years.
ONON Stock Bounces Above 50-Day Line, Heads Toward Breakout
After crossing a trendline near 30, ONON stock got a promotion from the watchlist to IBD Leaderboard. It held support at its 50-day line.
The IPO stumbled sharply after an initial spike following its debut as a public company. The subsequent selling created overhead supply, which has shrunk but remains. That will be something to watch if ONON stock breaks out then encounters selling pressure.
The relative strength line has dipped as the stock sets up a new second-stage consolidation. But it bounced higher Monday as the stock approaches a new potential entry at 34.88.
To confirm On Holding's rebounding technical strength, look for the 21-day exponential moving average to climb above the 50-day line.
With Federer, Swiatek and Shelton in its court, see if ONON Stock can serve up a decisive breakout in heavy volume.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
