Reason to look into this fast moving company.

On Holding's spray-on running shoe could race to a gold medal at Paris OlympicsJul. 18, 2024 2:24 PM ETOn Holding AG (ONON) StockNKEBy: Amy Thielen, SA News Editor9 Comments

Boston Marathon winner Hellen Obiri might be racing to a gold medal in Paris this summer wearing a “spray-on” running shoe designed by Swiss sportswear brand On Holding AG (NYSE:ONON).

The robot-made CloudboomStrike LS is made from a type of thermoplastic that is sprayed onto a form of the wearers foot. With no tongue, laces, or heel-cap, each shoe is a featherweight 170g, more than 100g lighter than most running shoes of similar size.

The technology was developed by Johannes Voelchert, currently On’s (ONON) senior lead of innovation concept design. The midsole is composed of two layers of Helion HF Hyper Foam, and a carbon plate sandwiched between the foam to assist in propulsion. The process, which takes less than 5 minutes, eliminates the use of glue and creates a seamless, slip-on shoe. And besides its lightweight appeal, the manufacture of the shoe produces 75% less carbon emissions compared to On’s (ONON) other running shoes.

Ahead of the Paris Olympics, On Holdings (ONON) has been gaining altitude over the past six days, and as investors pile into the stock in the wake of Nike’s (NKE) disappointing FQ4 results. The stock has advanced 16% in a little over a week.

“ONON’s recent meteoric growth has been nothing short of astounding,” Seeking Alpha investing group PropNotes says, adding that, “it’s impossible to deny the brand’s momentum.”

And if Obiri is standing on the podium with a gold medal around her neck and Cloudbooms on her feet, On Holdings (ONON) could run away with another chunk of Nike’s (NKE) market share.