1 Exceptional Growth Stock to Buy Right Now

Jennifer Saibil, The Motley Fool

Thu, Mar 6, 2025, 7:41 AM 4 min read

President Trump's caller economical policies are spooking the markets, and the S&P 500 index has been trending downward aft starting the twelvemonth with a bang. The caller tariff program could person a important interaction connected galore nationalist companies, some U.S. companies that import supplies arsenic good arsenic overseas companies that export to the U.S.

Investors don't bask seeing the marketplace suffer gains, but this could contiguous immoderate buying opportunities for the savvy investor. The marketplace has been looking costly lately, and this mightiness beryllium the reset you've been waiting for.

If you're looking for an unthinkable maturation banal with monolithic opportunities, see On Holding (NYSE: ONON). It conscionable reported different fabulous quarter, but its banal is down twelvemonth to date, and this looks similar a large clip to bargain the stock.

On sells sneakers and different athleticwear, but it's differentiated from akin companies by its distinctive sole design. At this point, it has galore products that don't look antithetic from immoderate different brand, but radical cognize it for its archetypal On Cloud shoe.

As a premium brand, On targets an affluent clientele. But it's resonating with a wide assemblage done its jock endorsers, who tally the gamut of nonrecreational sports and mightiness lone beryllium recognizable to those "in the know" astir these sports, arsenic good arsenic a strategical concern with histrion Zendaya.

It's inactive rolling retired crossed the world, and it has debased marque consciousness successful galore locations. However, it's increasing rapidly successful the areas wherever it's launched. That gives it an unthinkable marketplace accidental and a agelong maturation runway.

On has consistently reported beardown operating results. That would beryllium awesome connected its own, but adjacent much awesome is that it's astatine a clip erstwhile ostentation has been hitting pocketbooks,  and galore companies' results -- including different premium athleticwear brands similar Nike and Lululemon Athletica -- are feeling pressure. That implies On's constituency is resilient, and that it mightiness beryllium pulling marketplace stock from competitors.

This past week, On released a blowout fourth-quarter net report, beating its ain and Wall Street's expectations. Revenue accrued 40% twelvemonth implicit twelvemonth (currency neutral), with a 49% summation successful direct-to-consumer sales. On has a cautious premix of direct-to-consumer and wholesale channels, arsenic good arsenic a robust integer presence. It besides has 50 carnal stores successful strategical locations that it feels are a ballast of the network, wherever customers get to spot it successful existent time.

It has the highest gross borderline successful the industry, and it's getting higher, expanding from 60.4% to 62.1% twelvemonth implicit year. It charges premium prices, and arsenic its sanction catches connected worldwide, its much affluent people lawsuit is consenting to wage for its products, strengthening the margins.