Our analysts have good reason to believe today’s market pounding is just the beginning.
Brian McGough and Keith McCullough may be fans of the shoes, but that doesn’t cloud their judgement of the company’s stock.
Sixteen of 19 Wall Street analysts have “Buy” ratings on On Holding (ONON). McGough and the Retail team went against the consensus, tabbing the shoe manufacturer as a “Best Idea” Short and nailed the call. The stock price fell off a cliff today after badly missing earnings expectations.
“For a name like this priced as the second coming of Nike, you can’t miss a quarter and have a 2,000 basis point deceleration in your top line,” McGough explains in this clip from The Call @ Hedgeye. “You just can’t do that. The stock’s down 18% right now, and this isn’t even the big blowup yet. I still think this name’s going to have a colossal blowup in 2024.”
“There’s nothing quite like shorting a thing you own or wear,” McCullough adds.
Subscribe to Retail Pro to follow McGough and the Retail team’s long and short ideas.
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