Here's an update on the chart in a breakout shoemaker that is giving Nike a run for its money. In May, I wrote about On Holding AG (ONON) ahead of its earnings with a buy recommendation. The earnings report beat expectations and the stock rallied more than 40%.
Now the shares are pulling back into support as we look ahead to not only next quarter's earnings, but the start of the summer Olympics where the leading shoe brands will be prominently featured. I recently added to my ONON holdings, and also hold another footwear name in our growth portfolios, Deckers Outdoor (DECK) , and believe both companies will continue to take market share from Nike (NKE) in coming quarters. To start, let's examine the ONON weekly chart.
You'll notice that the stock popped on the week of May 14th following the earnings report above the 2023 highs of $36.90. In the world of technicals, this level is now a pivot point that was formerly resistance, and can now be expected to act as support.
Notice the accompanying volume spike on the earnings that only reinforces this observation. Included in the secondary panel below is a ratio chart of Nike divided by ONON. You can clearly see ONON/NKE has been moving higher since 2023 indicating ONON's outperformance to the shoe giant.
To get even more context of how NKE is doing relative to the other companies in the footwear sub-industry group let's look at a trailing 12-month performance chart of 7 stocks in the group. Nike is -12.64% in the prior 12 months c.
