ON HOLDING AG-CLASS A (NYSE:ONON) – A High-Growth Momentum Stock with Strong Technical Setup

ON HOLDING AG-CLASS A (NYSE:ONON) stands out as a high-growth momentum candidate with a favorable technical setup. The company, known for its performance sports products, has demonstrated strong earnings and revenue growth while maintaining a solid technical trend. Below, we examine why ONON fits the criteria for high-growth momentum investors and why its chart suggests a potential breakout opportunity.

Growth Momentum Highlights

• Strong Revenue Growth: ONON reported a 34.9% year-over-year increase in trailing twelve-month (TTM) revenue, with recent quarterly sales growth exceeding 42.9%.
• Earnings Expansion: Despite a recent quarterly EPS decline (-30.3%), the company’s full-year EPS surged by 199.9%, reflecting strong profitability improvements.
• Free Cash Flow Growth: FCF per share grew by 141% over the past year, indicating efficient cash generation.
• Profit Margin Expansion: Quarterly profit margins expanded to 14.8%, up from 4.8% in the prior quarter, signaling improved operational efficiency.
• Positive Earnings Surprises: ONON has beaten EPS estimates in two of the last four quarters, with an average surprise of 48.5%.

Technical Strength & Setup

• Perfect Technical Rating (10/10): ONON’s price action shows a strong uptrend across short and long-term timeframes, outperforming 93% of the market.
• Bull Flag Pattern: The stock is consolidating after a strong rally, presenting a potential continuation setup.
• Support & Resistance Levels: Key support lies near $58.25, while resistance sits around $59.97-$60.16. A breakout above resistance could signal further upside.
• High Relative Strength: ONON ranks in the top 7% of stocks based on price performance over the past year.

For a deeper technical breakdown, review the full technical report.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar characteristics.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.