Jim Lebenthal On Holding AG ONON-N BUY Aug 30, 2024

A controversial quarter that split the street. He's on the fence. 

He just bought it. It's highly innovative and growing. Up and coming, like Lululemon many years ago and building their retail presence beyond shoes.

It is an uptrend and looking OK. It is somewhat expensive so could pull back to the trend line. Could be OK for legging in.

Some brands like ON and Skechers are hot, and some like Nike are not. You must pick your spots in this sector.

It reports tomorrow. It's a pricey stock, but it's also growing like a weed. People love their shoes. Volumes are up.

Boasts 60% gross margins and 30% revenue growth.

Is -19% this year, but peaked in January. It's a richly valued momentum stock, struggling in this market. Last week, they reported an excellent quarter: a big top and bottom line beat, accelerating revenue growth and strength outside North America. Gross margins beat, a huge EPS beat and issued solid full-year guidance. Net wholesale sales were up 29.1% and direct to consumer up 43.4%. Saw huge brand awareness growth last year.

He's liked it since the $30's. But trades at a high PE in the 30's like CMG. Buy weakness.

Nike has fallen on hard times, and ONON has picked up the slack. He likes the new CEO. Buy partially in this volatile market.