Shares of On Holding hit an all-time high at the end of January after the popular running shoes maker reported a monster earnings leap last quarter. The No. 1 ranked shoemaker's Relative Strength (RS) Rating jumped 13 points, from 63 to 76 Tuesday, putting its stock in the top quartile of all stocks.
The upgraded RS Rating shows that On Holding tops more than three-fourths of all other stocks for price performance over the last 52 weeks. Other ratings for On Holding stock shine even brighter. It boasts a 93 Earnings Per Share Rating out of 99, putting it in the top 7% of companies for profit growth in the last two quarters and last three years.
On Holding Gets Top Marks For Fundamentals
On has a C+ Accumulation/Distribution Rating. That shows that funds are buying slightly more of its shares than they're selling. Additionally, its A SMR Rating (sales + profit margin + return on equity) is the best possible and reflects strong fundamentals. Its 84 Composite Rating shows it tops 84% of all stocks overall. The Composite is a combination of IBD's top five other ratings.
Decades of market research show that top-performing stocks often have an RS Rating north of 80 as they begin their biggest runs. See if On Holding can continue to show renewed price strength and hit that benchmark.
When To Sell Stocks To Lock In Profits And Minimize Losses
Switzerland-based On broke out of a flat base on Jan. 21 and rose to a record 64.05 high on Jan. 30. It consolidated in sync with the market correction over the next couple of months, dipping to a 43.36 low on March 21. Tuesday afternoon On Holding stock traded around 48, down fractionally for the day. While now is not an ideal time to invest, see if the stock goes on to establish and enter a buy zone in heavy trade.
In its latest quarter, On reported a 36-cents per share profit. It reversed strongly from a 6 cents per share loss the same quarter a year ago. That represents a 712% increase in EPS. Revenue for its Dec. 31-ended quarter rose 26% year over year to $668.6 million. For the current quarter, analysts polled by FactSet expect a 23 cents per share profit, down from 37 cents a year ago. It's forecast to see a 33% surge in revenue to a record $753.3 million.
Ranks No. 1 In Its Industry
On Holding holds the No. 1 rank among its peers in the 11-stock Apparel-Shoes & Related industry group, based on its Composite Rating. Birkenstock Holding and Skechers USA are also among the group's highest-rated stocks.
The unique IBD Relative Strength Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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