ONON Should I Buy
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On Holding Ltd (ONON) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. Despite short-term technical weakness, the company's strong financial growth, rising brand awareness, and positive analyst sentiment make it a compelling long-term investment opportunity.
The technical indicators suggest a bearish trend in the short term. The MACD is negatively expanding, RSI is neutral at 43.96, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 44.364, with key support at 42.812 and resistance at 45.917.
Analysts are bullish, with multiple firms maintaining Buy ratings and high price targets (e.g., $85 from UBS, $59 from Goldman Sachs).
Strong financial performance in Q3 2025, with revenue up 24.94% YoY, net income up 289.84% YoY, and EPS up 300% YoY.
Rising brand awareness and premium pricing power in the sportswear market.
Upcoming Q4 2025 earnings release on March 3, 2026, which could act as a catalyst if results beat expectations.
Short-term technical weakness with bearish indicators.
Stock has underperformed recently, down 29% despite strong sales growth.
No significant hedge fund or insider trading trends to indicate strong institutional support.
In Q3 2025, On Holding reported revenue of $794.4M, up 24.94% YoY. Net income increased to $118.9M, up 289.84% YoY, with EPS rising to $0.36, up 300% YoY. Gross margin improved to 65.75%, up 8.50% YoY, showcasing strong profitability and operational efficiency.
Analysts are generally bullish on ONON. KeyBanc lowered its price target to $58 but maintained an Overweight rating. Goldman Sachs upgraded the stock to Buy with a $59 price target, citing attractive valuation and strong growth potential. UBS remains very bullish with an $85 price target, highlighting the company's rising brand awareness and market share potential. Piper Sandler raised its price target to $60, emphasizing the company's durable growth.
