Investors Eyeing Growth in On Holding and Toast Stocks

Investing goals for 2024 suggest opportunities in growth stocks, particularly On Holding and Toast, as they display strong sales growth and profitability.

Date: 26-01-2025

AI Rating: 8

Potential Impact on Stock Prices
Investors should note that both On Holding and Toast show promising financial indicators that could significantly influence their stock prices moving forward.

On Holding, a premium activewear brand, reported a remarkable 33% year-over-year sales growth in Q3 2024. Furthermore, its gross margin has expanded from 59.9% to 60.6%, indicating an ability to maintain profitability while capturing a growing share of the market. The company’s revenue stands at $2.5 billion, displaying its emerging presence in the elite athleticwear market. This growth signal may enhance investor interest, subsequently bolstering its stock price.

Toast is also creating a buzz with its innovative restaurant management platform, adding 7,000 new locations, a 28% increase year-over-year in Q3 2024. With an operating income transition from a loss of $59 million to a profit of $35 million, and a significant rise in free cash flow from $37 million to $97 million, Toast exhibits solid improvements in financial health. Additionally, it claims a 13% U.S. market share, and its robust growth could push its stock higher as market confidence builds.

Both companies have seen substantial stock price increases over the past year, with On Holding up 108% and Toast increasing by 125%. Market sentiment could remain positive as both companies look to optimize their operations and capitalize on their growth potential.

Stocks: ONON TOST