Why On Holding AG (ONON) Surged Last Week
On Holding AG (NYSE: ONON) was among the top performers in the stock market on Thursday, with its share prices surging by 4.62 percent to close at $60.25. This growth came on the back of a bullish outlook for the company for the rest of the year.
In a statement released by On Holding AG, the company expressed confidence in its full-year performance, expecting a 28 percent increase in net sales compared to the previous year. The company attributed this positive outlook to strong demand across various channels, regions, and product categories. Additionally, On Holding AG highlighted its exciting product pipeline for the remainder of the year, aiming to capitalize on its global brand momentum.
Despite the strong sales growth, On Holding AG reported a 38 percent decrease in net income for the first quarter of the year, citing a figure of $56.7 million compared to $91.4 million in the same period last year. Despite this, investment firm Goldman Sachs maintained a “hold” recommendation on the stock, with a price target of $64. On the other hand, Needham raised its price target for On Holding AG to $62 from $55 and recommended buying the stock.
In terms of overall performance, ONON ranked 9th on the list of top-performing stocks last week. While On Holding AG shows potential as an investment, some experts believe that AI stocks hold even greater promise for delivering higher returns in a shorter time frame. One particular AI stock has shown significant growth since the beginning of 2025, outperforming popular AI stocks that experienced a 25% decline. For investors seeking a promising AI stock trading at less than 5 times its earnings, exploring the opportunities presented by the cheapest AI stock could be a worthwhile endeavor.
In conclusion, On Holding AG’s recent surge in share prices reflects investor confidence in the company’s future performance. With a strong sales outlook and promising product pipeline, On Holding AG remains a stock to watch in the coming months. Investors looking for exposure to the AI sector may also find value in exploring opportunities within this rapidly growing market segment.
