BECAUSE You Trade Stocks at a Discount With 70% Up Potential.

On Holdings' NYSE: ONON The share price has had its share of storms, including macroeconomic pressures, dramatic CEO changes, FX volatility, and slow growth, but these are priced into the market. Despite the headwinds, the company continues to perform well, maintaining high growth rates and expanding global margins with share to be taken.

Its main competitor is Nike NYSE: NKEand Nike is far from regaining its lost glory. The takeaway for ONON investors is that the stock is trading at a significant discount to its outlook, a view reinforced by May's guidance update, which suggests patient investors are looking for a triple-digit upside.

OPEN stock We are in a critical position for the near term

Between now and then, there is a huge opportunity near the middle of the year. The company is not only trading at a discount to its forward-looking, low-ball rate, but to its competitors, it is raising the price multiple times now and in the long term. Additionally, analysts remain committed to the term, providing a solid basis for stock accumulation. Data tracked by MarketBeat reveals 19 current ratings, an average Buy consensus, and a Buy-side bias of 79%.

The price target is performance data following the Q1 2026 earnings report, which predicts a rise of more than 70% from a key support level. As it stands, the price target has been stable on a trailing 12-month (TTM) basis and is unlikely to change significantly without a change in outlook. An important support level is near the April low, just below $32, and is likely to be tested.

Institutional data suggests that support at the critical level is strong and likely to reverse there. The institutional group only owns 37% of the stock but has been aggressively accumulating more than TTM. The data shows that they are buying at about a $2-to-$1 pace, with activity rising sequentially to a record high in Q1 2026. The pace remained cheap in early Q2 and will likely remain so given the value proposition. The biggest risk from the sell side is the insiders, but that's not scary either. Former CEO Martin Hoffmann is stepping down as part of a pre-planned process initiated by his departure; in addition, insiders, including founders/CEOs, have a significant share and are sellers.

On Holdings Raises Profit Guidance After Hot Quarter

On Holdings had a strong Q1 report, with revenue growing 14.5% year-over-year (YOY), 26.4% on a forex-neutral (FXN) basis, with strength across channels, geos, and product lines. DTC, the high margin segment, grew by 16.4% and 28.7% FXN, while Wholesale grew by 13.3% and 25.1% FXN, both supported by strength in Asia-Pacific (APAC) and Apparel.

By region, APAC led with gains of 44.4% and 61.4%, followed by FXN's 25.6% increase in Europe, the Middle East, and Africa, and FXN's 13.3% gain in the Americas. In terms of product channels, the main footwear segment grew by 12.2%, 24% FXN, while Apparel grew by 57.5% FXN to 20% of the business, and Accessories grew by 86.6%.

Margin news was also strong. The Company experienced improvements in gross, EBITDA, and revenue levels on both a GAAP and adjusted basis. GAAP and adjusted earnings rose 82% and 76%, respectively, both before the deal and the impact of Q1's strength on the outlook. The company cited operational and operational strength as drivers of the benchmark, reaffirming its revenue forecast and raising its full-year margin outlook.

Management expects adjusted EBITDA margin in the 19.5% to 20% range, a full 100 bps better than previous guidance, and the revenue outlook is likely cautious. Either way, revenue guidance predicts a YOY slowdown in growth, but a sequential acceleration through the end of the year.

On Holdings: A Strong Brand With Early Catalysts

While the company's headwinds will not ease, including uncertainty and tariff-related cost pressures, there are catalysts in place to drive efficiency. Includes strengths in DTC, APAC, and Apparel, as well as LightSpray innovation. It enables rapid, waste-free, automated shoe manufacturing, paving the way to significant margin improvements and operational efficiencies. It uses a robotic arm to spray a mile-long thread into the mold of the shoe, which instantly hardens into a strapless upper.

The strength of the On Holdings business and brand is reflected in the balance sheet highlights. The company increased cash, working capital, current assets, and net worth while reducing total debt. Equity has improved by 8.5% year over year and will likely continue to grow as the year progresses.

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