The thesis

On Holding AG develops performance sports products with a 17.1% year-over-year revenue growth. The company operates with a gross margin of 63.88% and a net margin of 8.05%. With a conviction score of 25, the setup is interesting due to the risk-on rotation. The analyst consensus rating is buy, with a DCF intrinsic value of $32.

Why now

The current risk-on rotation, driven by the Federal Reserve's decision to stand pat on key rates, makes this moment compelling. The recent 17.1% year-over-year revenue growth indicates a strong market position, warranting attention now.

What to watch

The company's future revenue growth and margin maintenance will be key indicators to confirm or deny the thesis. The upcoming earnings reports and market reaction to the Federal Reserve's future decisions will also be crucial in assessing the company's position.

Key risks

Valuation risk is a concern, given the P/E ratio of 40.2x. Execution risk is also present, as the company must maintain its revenue growth and margins. Macro risk, such as a shift in consumer spending, could also impact the company's performance.

Theme exposure