Shoemaker On Holding is the IBD Stock Of The Day for Friday. ONON stock is trading in a buy zone around record highs after breaking out early in the week.
Switzerland-based On Holding produces a variety of running and tennis shoes, including its popular portfolio of Cloud5, Cloudnova, Cloudmonster and Cloudrunner lines. On Holding has also expanded into premium footwear, apparel, and sports and outdoor accessories.
Retired tennis legend Roger Federer has a close partnership with On and has his own line of shoes. The company also inked a multiyear partnership with movie star Zendaya in the summer of 2024.
In addition to high-profile partnerships, On Holding's focus on innovation and newness has helped pull market share from legacy footwear giants such as Nike and Adidas.
On Holding's revenue accelerated over the past two quarters to a 43% gain for its Q3 results in November. Earnings, however, fell 19% after two quarters of triple-digit increases.
Analysts expect 2024 earnings to jump 122% from last year, before slowing to a 14% gain for 2025.
For On's Q4 results, which it will likely release in March, FactSet expects earnings will improve to 17 cents per share from a loss of 6 cents last year. Analysts see revenue jumping 28% to $652 million.
On Holding Stock Performance
ONON stock has been trading around a 60.12 buy point for a seven-week flat base.
Shares rebounded above the entry Thursday after first attempting to break out on Tuesday.
The current buy zone, which stretches 5% beyond the buy point, extends to 63.12.
On Holding on Friday hit a record high of 60.99, marking a 135% rally from its 2024 lows in January.
ONON Stock is on the IBD Leaderboard Leaders watchlist, as well as the IBD 50 list of top growth stocks.
Hoka Maker To Report
Rival Deckers Brands, also on the IBD Leaderboard list and IBD 50 list, reports Q3 results late Thursday.
Deckers, which makes the popular Hoka and Ugg shoes, is expected to announce a 2% uptick in earnings to $2.57 per share on 11% revenue growth to $1.73 billion.
DECK stock is extended near record highs following a cup-with-handle break out in November.
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