10 Stocks That Could 10X Over the Next 5 Years

5) On Holding AG (NYSE:ONON)

Number of Hedge Fund Holders: 34

On Holding AG (NYSE:ONON) is engaged in the development and distribution of sports products worldwide.

Market experts opine that On Holding AG (NYSE:ONON)’s innovative products and strong brand positioning are expected to act as critical tailwinds.  The company’s strategic emphasis on DTC channels, together with its efforts to strengthen wholesale partnerships, should continue to aid its strong growth trajectory. On Holding AG (NYSE:ONON)’s initiatives consist of brand marketing collaborations, multichannel retail management, and an emphasis on product innovation. Such efforts led to increased brand awareness and continued strength in product sell-through.

Market experts believe that the company’s expansion into the apparel category should aid its revenue growth in the near term. This expansion focuses on establishing On Holding AG (NYSE:ONON) as a holistic athletic brand. It should open up additional revenue streams and reignite its presence in the broader sportswear market.

The strategic focus of On Holding AG (NYSE:ONON) on expanding DTC channels, increasing wholesale doors, and improving the apparel category should fuel future growth. Its improved inventory metrics can also support profitable growth and healthy reordering patterns. Through continuous investment in the e-commerce platform and expansion of its physical retail presence, On Holding AG (NYSE:ONON) should increase its DTC mix and achieve overall growth.

Analysts at Stifel Nicolaus increased their price target on the shares of On Holding AG (NYSE:ONON) from $45.00 to $59.00, giving a “Buy” rating on 18^th September. Artisan Partners, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:

“We initiated new GardenSM positions in On Holding AG (NYSE:ONON) during the quarter. On is an emerging global athletic sports brand focusing on performance footwear. Performance running footwear is one of the most challenging categories to break into, requiring a high degree of technical knowledge, significant investment spending and marketing prowess, each of which On has acheived over the years. The company’s foundation in performance footwear provides a high barrier to entry and a strong and credible foundation for the brand to continue growing. We believe On will generate attractive growth as it scales across product categories, channels and geographies within the $300 billion global sportswear market.”