Artificial intelligence powerhouses Nvidia and Meta Platforms have already blasted onto the IBD Leaderboard list of top growth stocks. Now Swiss running-shoe maker On Holding has laced up a spot on the Leaderboard watchlist. ONON stock has just jumped into a fresh buy zone from a newly minted 33.24 buy point in a cup with handle.
On Feb. 16, ONON stock was featured as the IPO Stock Of The Week as it looked to hit its stride.
While Nvidia flirts with the 800 mark and Meta stock has entered a buy zone from a three-weeks-tight formation, On Holding closed Monday's session just shy of the handle entry. Rising 4% Tuesday, ONON stock has climbed into buy range in rising and above-average volume.
On Holding is also warming up to report Q4 and full-year 2023 earnings on March 12.
On Feb. 2, Meta Platforms gapped up after reporting "monumental" earnings. On Feb. 21, shares of Nvidia stock also spiked after the AI chip leader posted another beat-and-raise quarter.
Investors will now see if shares of ONON stock can build on Tuesday's breakout and spark a similar jump when the company reports quarterly results next month. Analysts expect earnings growth of 53% to 46 cents a share for 2023. For 2024, Wall Street forecasts 49% EPS growth to 69 cents per share.
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ONON, NVDA, META On Premier IBD Stock Lists
Given their recent stellar stock performance and earnings reports, it's no surprise that Nvidia and Meta earn prominent placement on IBD's top stock lists. Both of these Magnificent Seven stocks make the IBD 50 and IBD Big Cap 20 screens. Nvidia also lands on IBD Sector Leaders, our most stringent stock screen.
While ONON stock looks to graduate from the IBD Leaderboard watchlist to full membership on the list, the 2021 IPO has already secured a spot on the IPO Leaders screen.
This 'Fed' Loves On Holding
On Holding generated a lot of early buzz by signing a deal with retired Swiss tennis star Roger Federer. The winner of 20 Grand Slam tennis championships helped the company launch eco-friendly sneakers made from vegan leather.
ONON stock did not join Nvidia and Meta on this month's list of new buys by the best mutual funds. But Fidelity Contrafund (FCNTX), which initiated a stake in the company in 2021, upped its holdings from 8.22 million shares to 8.24 million in the December quarter.
Plus, On Holding sports a B Accumulation/Distribution Rating, and 15 funds with an A+ or A rating from IBD own shares of ONON stock.
The company earns a 94 Composite Rating. That puts it alongside Nvidia and Meta in the top 6% of all companies in terms of the most important stock-picking factors.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
