Morningstar senior equity analyst David Swartz says On Holding (ONON) is willing to sacrifice near-term sales to protect high prices and gross margins. He thinks any quarterly results shortfall is a blip in his 10-year discounted cash flow view on the share price. Yet while Nike (NKE) discounts to clear inventory, investors are questioning On's growth strategy ahead, including a soccer business and Portugal cleat factory, Swartz says. Tom White then discusses an example options trade for On Holding stock.
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