On Holding Rise With Roger Federer, Ben Shelton Sponsorship
Retired Swiss tennis legend Roger Federer continues to be a strong presence in the world of tennis and footwear. A shoe maker based in Switzerland Holding on (It’s on) would like to a A close partnership with FedererWho has helped land sponsorships for other tennis stars such as Iga Sviatek, Joao Fonseca and Ben Shelton, who each performed brilliantly at this year’s Australian Open.
Now that Wall Street expects ON Holdings to deliver triple-digit earnings growth through 2024 in March, the stock has joined IBD’s Breakout Stocks index as it teases a new buy zone.
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It works on the IBD 50 screen while holding
Born in the mountains of Switzerland, On Holding began by making running shoes. Since then, it has expanded its lineup to include premium footwear, apparel and accessories for tennis, outdoor, training and more.
Buoyed by strong revenue and sales growth, Holding on Got a place on IBD 50. It stands side by side Tesla (TSLA) on the IBD Leaderboard Watchlist.
Although the company posted 19 percent revenue growth for the third quarter that slowed year-over-year to 18 cents, analysts are forecasting 120 percent growth for 2024.
Sales growth was strong, helped by a partnership with Federer and sponsorship deals with tennis stars like Shelton. In the third quarter, revenue rose 43 percent to $751.9 million from the previous quarter.
Over the past eight quarters, sales growth has risen from 23 percent to 89 percent.
See who joined the IBD Breakout Stocks Index
It is long among peers on the stock.
in IBD Stock CheckON Holdings received a strong 98 composite rating, attachment Birkenstock (Birk). Outdoor decker (Dec) and Skechers (SKX) are behind at 97 and 96, respectively.
A signal of demand for the shares, the stock has a B+ stock/distribution rating and an upside/down volume ratio of 1.5. In addition, eight-quarters saw increasing fund ownership. Additionally, 50 funds A+ rating from IBD’s own shoemaker shares.
| Company | sign | Comp rating | EPS rating | RS rating | SMR rating | A/D level |
|---|---|---|---|---|---|---|
| Birkenstock | Birk | 98 | 97 | 84 | A | B+ |
| Holding on | It’s on | 98 | 89 | 94 | b | B+ |
| Outdoor decker | Dec | 97 | 99 | 93 | A | a – |
| Skechers | SKX | 96 | 87 | 82 | b | A |
Taking the stairs to the shopping area
After finding support at the 50-day moving average, On Holding has established a flat base with a buy point of 60.12. The relative strength line is at a 52-week high, showing market leadership and earns a blue score in MarketSurge.
After briefly hitting new highs on Tuesday, ON Holdings pulled back. On Wednesday, the stock rose initially and then retreated, but the fundamentals remained intact. It closed the session 3% below the buy point. On Holding had earlier cleared the trend line entry around 56.60.
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of IBD Breakout Opportunities ETF (BOUT) tracks the IBD Breakout Stocks Index from Innovator Capital Management. Like other index ETFs, this fund allows you to invest in the entire index in addition to buying individual stocks. Learn more here About ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter). @IBD_MGalgani.
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