On Holding stock looking like a buy, Barron’s says

On Holding’s patented CloudTec cushioning quickly attracted celebrities like Roger Federer and Gisele Bundchen. Then, On’s stock became red hot, too, jumping 70% just since the start of the year, Teresa Rivas writes in this week’s edition of Barron’s. Fleet-footed investors can still get in on the trend, thanks to a recent pullback in the shares. Concerns about inventories, high marketing expenses, and lackluster guidance overshadowed an earnings beat and a guidance raise. On closer review, it’s unclear what the shares were being punished for. There was nothing particularly concerning about earnings-certainly not the inventory, which reflects its attempts to meet demand, nor marketing expenses, which should ensure that demand stays strong. That proved to be a buying opportunity, and this drop probably will, too, the author says.