Swiss performance shoemaker On Holding is the IBD Stock Of The Day for Wednesday. ONON stock is on the IBD Leaderboard list of top growth stocks. It has spiked 35% the past month.
Zurich-based On Holding is backed by tennis champion Roger Federer and first went public in September 2021. Its running, hiking and athletic shoes gained popularity for their lightweight designs and superfoam bottoms, which are said to boost comfort and performance. On's product lines include the On Cloud, Cloud X, Cloudnova and The Roger Pro., in collaboration with Federer. The company also produces various training gear items like shorts, pants and jackets.
On Holding Performance
On Holding reported positive earnings and revenue growth the past three quarters. During its most recent Q3 results, earnings jumped 16% to 7 cents per share but still missed estimates of 11 cents. For its Q4 report on Feb. 6, analysts expect adjusted earnings of 6 cents per share, compared to a loss of 64 cents last year. And sales are seen leaping 44% to $296 million.
North America accounts for more than half On's sales, with 48% coming from the United States, according to FactSet data. Roughly 8.2% of revenue comes from Canada, followed by Germany and the United Kingdom at 5.1% and 3.9%, respectively.
A number of shoe sellers are doing well at the start of the new year. Crocs is up nearly 15% over the past month and leads the Apparel-Shoes & Related industry group, according to IBD Stock Checkup. Deckers Outdoor and Rocky Brands soared 15.7% and 33%, respectively, over the last month and are among some of the group's highest-rated stocks. On Holding ranks seventh in the group.
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ONON Stock
ONON stock is working up the right side of a 24-week bottoming base. Bottoming bases are similar to cup bases, except they often form within a deep consolidation. Shares have climbed back above the stock's 200-day moving average, reclaiming that level on Jan. 11.
On Holding pulled back about 2% on Tuesday, which could mark the start of a handle on the cup base. ONON stock is trading about 14% below the base's 25.10 buy point, according to MarketSmith. A valid handle needs at least four days to form. If that happens, the buy point would be 22.66.
ONON stock's relative strength line is near 52-week highs. And its RS Rating rose to 73 on Monday, showing strong performance against its peers over the last year. The shares have a 77 EPS Rating and an 86 Composite Rating out of a best-possible 99. The Composite Rating combines a number of technical indicators into one easy-to-read score.
ONON stock is up 21.5% over the past three months but down 13.2% over the last year.
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