ONON Should I Buy
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On Holding Ltd (ONON) is not a strong buy for a beginner, long-term investor at this moment. The stock is currently facing leadership transition risks, technical weakness, and mixed sentiment from analysts. While the company has shown strong revenue growth and gross margin improvement, the recent CEO departure has created uncertainty, and the stock is in a bearish technical trend. Additionally, no strong trading signals or influential buying activity supports immediate action. It is advisable to monitor the stock for stabilization before considering an entry.
The stock is in a bearish technical trend with MACD below zero and negatively expanding, RSI indicating oversold conditions at 17.272, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support levels are at S1: 33.597 and S2: 31.588, with resistance at R1: 40.098.
The company has demonstrated strong revenue growth (22.62% YoY) and gross margin improvement (up 2.90% YoY). Analysts highlight the company's product innovation, store expansion, and strong brand momentum.
The CEO's resignation has led to an 11% drop in stock price and raised concerns about leadership stability. Analysts have lowered price targets, citing FX headwinds, slower apparel growth, and near-term risks. Technical indicators are bearish, and the stock has underperformed significantly in 2026.
In Q4 2025, revenue increased by 22.62% YoY to $743.8M, while net income dropped by -22.88% YoY to $69.1M. EPS also declined by -22.22% YoY to $0.21. Gross margin improved to 63.92%, up 2.90% YoY.
Analysts maintain a generally positive long-term outlook with Buy and Outperform ratings, but recent price target reductions reflect concerns about leadership changes and near-term risks. Price targets range from $51 to $70, with a median target of around $57.
