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 solid technical setup. The company, known for its performance sports products, has demonstrated strong earnings and revenue growth while also presenting a favorable chart pattern for potential breakout traders.

Growth Momentum Highlights

• Revenue Growth: ONON posted a 34.9% year-over-year revenue increase (TTM), with quarterly sales growth accelerating in recent periods. The most recent quarter saw a 43% jump in sales compared to the same period last year.
• Earnings Expansion: Despite a recent quarterly EPS decline (-30.3%), the company’s trailing twelve-month EPS grew by 30.9%, and full-year EPS surged nearly 200% in the last fiscal year.
• Profit Margins: The latest quarter’s profit margin improved to 14.8%, up from 4.8% in the prior quarter, indicating better cost management and pricing power.
• Free Cash Flow Growth: FCF per share expanded by 141% over the past year, reinforcing financial health.

Technical Strength & Setup

ONON holds a Technical Rating of 7, reflecting a positive long-term trend, though recent price action has been mixed. Key observations from the technical report include:

• Relative Strength: The stock outperforms 88% of the market and 83% of its industry peers.
• Support Levels: Strong support exists between $51.47 and $53.99, backed by moving averages and trendlines.
• Resistance Zone: A breakout above $59.69-$60.69 could signal further upside.
• Setup Quality: The Setup Rating of 7 suggests a decent consolidation, though recent volatility may require patience for an optimal entry.

Trade Considerations

A potential trade setup suggests an entry above $55.96 (near recent highs) with a stop-loss below $51.46, limiting downside risk to ~8%.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar growth and technical conditions.

Disclaimer

This is not investment advice. Always conduct your own analysis before making trading decisions.