ON is an attractive buy due to high gross margins, ~20% revenue growth, and low valuation relative to peers; added to watchlist.

On has market share, and the most important thing for On in the long run is that it has a share with a very high profit margin. This is a product that people will pay for and will pay extra; They set a profit margin of 65% in their long-term forecasts.

This extends to 2029. They said they would grow revenues by nearly 20% and achieve a gross profit margin of 65%. This is 15, 20 or even 30% higher than their competitors.

The other big thing is that they recently said they have signed Mbappe. So they move on to football, if you want to call it that. They are also turning to golf. But, if you put all this together with the fact that the stock is now trading at a forward price-to-earnings ratio of around 17, that's an insane price for a company that's growing at 20% annually.

I was waiting for "On" to be evaluated in a way that I could support.

Stocks in shoe companies are not usually very highly valued. But "On" did that. It was beyond what I considered reasonable. Now that the price has started to fall, this interests me a lot.

Thus, "On" can certainly gain momentum in additional sports categories. I believe this is a long- term driver. This stock is now added to my watchlist.

Another thing to consider regarding "On" that I find very interesting is thinking about who buys "On" shoes. Who pays $150, $200, or sometimes $300 for a pair of shoes? Not necessarily the person who goes for a run.

He is the person who wants to acquire a well-known brand. They want something a little elegant , and perhaps a little different . It's the suburban mom or dad who drives their kids to football.

I see them everywhere. I now live in the suburbs. But my wife bought me my first pair of "On" shoes. That's what caught my attention.

If this is among my wife's interests, then know that women do the majority of the shopping. This is one of the reasons that made me buy On shares in the first place, because their marketing was heavily focused on women, and they had the best athletes, the best runners, and the best tennis players, and Zendaya was one of their brand ambassadors.

They have a complete production line in cooperation with her. They have now moved more towards the men's side with their signing of "Mbappe". But they still don't spend as much as a company like Nike.

And I think this is the right way to operate, because you make your money selling to suburbanites and people who can afford to spend these amounts, not just selling to top athletes.

Because if it doesn't make me want to buy shoes so I can take my children to school, then it's pointless. Therefore, they are in a very interesting and valuable position .

I repeat that number again. The number to watch is their gross profit margin. They maintain it at 65%. This shows you the pricing power they have in the market.