On Holding is Wednesday's pick for IBD 50 Growth Stocks To Watch as the Swiss footwear stock is in a buy zone out of a flat base on its weekly chart. The company reported a mixed third-quarter earnings report Tuesday, but ONON stock resumed its climb Wednesday as investors reevaluated the results.
On shares were back in bull mode Wednesday morning after several analysts upgraded and raised their price targets on the stock.
On Holding makes athletic footwear, apparel and accessories for running, hiking, training, tennis and lifestyle.
ONON Stock In Buy Zone
ONON stock trimmed larger morning gains to under 3% Wednesday in heavy volume. The stock hit a record high Wednesday morning before fading.
This follows Tuesday's volatile action that ended the day down less than 0.2%. Trading has been heavy over the last several days.
Shares are in the 5% buy zone up to 55.44 of a flat base with a 52.80 buy point on its MarketSurge weekly chart. ONON stock bounced off its 10-week moving average Tuesday and is currently around 7% above the line.
On Holding has outperformed 94% of stocks in the IBD database as reflected in its 94 Relative Strength Rating. Shares have doubled so far this year.
Earnings Miss On Strong Sales
On Holding missed third-quarter adjusted earnings estimates but topped sales views early Tuesday. The footwear company's third-quarter earnings dropped around 19% from the prior year.
Net sales increased 32.3% and its gross profit margin rose to 60.6% from 59.9% vs. last year. The footwear maker also increased its full-year net sales outlook, and predicts growth of at least 32%.
Full-year 2024 earnings estimates expect a 136% rise in profits, which then slows to a 15% gain in 2025.
Its Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks.
Mutual funds have been adding ONON stock, with 521 owning shares in September, up from 512 in June and 447 in March.
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