Stock of the Week: On Holding - The Last Earnings Release Drew a Positive Market Reaction
Positive earnings surprise sparks renewed investor interest
Here is the 40th edition of “Stock of the Week”. You can find all the previous analyses and my articles on my main page (for an easier search, use a computer, mobile version is harder to navigate).
Here is the link to the previous “Stocks of the Week” as well
The latest earnings report was very strong. I recently published a Stock of the Week article on On Holding, where I highlighted that its previous valuation looked stretched and identified 2 attractive buy zones at $47 and $35. The $35 level has since acted as solid support, helping fuel the stock’s recent rise following the earnings release. Let’s dive in!
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The stock at a glance
Recent news
On Holding plans selective price increases in the US to offset potential tariff impacts, while maintaining strong demand for its athletic footwear and apparel
Marc Maurer, co-CEO, announced his exit after 12 years with the company
Company headcount reached 3,250 as of November 13, reflecting expansion in operations
Last earnings report
On Holding reported record Q3 2025 net sales of 794M CHF, representing a 34% increase. Gross profit margin expanded to 65.7%, driven by premium pricing and supply chain improvements. Adjusted EBITDA reached 179.5M CHF, while EPS hit 0.36CHF, surpassing estimates of 0.22CHF.
Analysts’ recommendations
Nov, 13. UBS. Buy. $79 —> $85
Nov, 13. Truist. Buy. $60 —> $65
My analysis
On Holding’s key advantage today is its accelerating market share gains. The company’s sales momentum stands out clearly when compared with peers: revenue is growing around 30% for On, versus less than 1% for Nike, 8% for Deckers Outdoor, and 5% for Adidas
Earnings growth should remain robust, supported not only by strong top-line expansion but also by improving margins. As the company scales, it benefits from greater operating efficiency, which drives profitability. EPS is expected to grow more than 100% in 2026 and another 35% in 2027
While the valuation is elevated, the market is pricing in rapid growth, rising margins, and strong momentum. Management continues to express high confidence in the company’s trajectory
As always, cautious investors may prefer waiting for a pullback toward the $35 area, whereas momentum-driven investors might choose to enter immediately and ride the trend
Technical analysis
I have defined three buying zones that I find interesting for long-term investments during pullbacks. While these zones may not be reached, I am prepared for a market (or stock) consolidation to seize long-term opportunities. For me, this approach offers a better risk/reward ratio.
Of course, this is just my opinion, and I am sharing it with you, but each investor should decide on their own investment style. With that said, here are my three buying zones for On Holding.
Buying zone 1. $35
Buying zone 2. $30
Buying zone 3. $24
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Used source: Marketscreener.com. Affiliate link just here
40th Stock of the Week? Congratulations. And you're right, there's a nice support at $35 for ONON. Although it's not ideal that the previous time it happened was during the Liberation Day crash, and the stock has retested those lows. But the support is clearly there. Best of luck for your next 40 Stock of the Week.
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