Despite Wall Street's perplexity over earnings, Jim Cramer advises buying On Holding shares.

• On Holding's quarterly results are being misjudged by Wall Street, according to CNBC's Jim Cramer.
• On Thursday, he advised investors with a long-term perspective to purchase shares.

On Thursday, CNBC's Jim Cramer advised investors to disregard the commotion surrounding the latest quarterly results and purchase shares of the Swiss shoemaker.

Over the past three sessions, On Holding's stock price has experienced significant fluctuations as investors evaluated its financial performance in the third quarter ended September 30. Despite Cramer's assertion that Wall Street's "confusing reaction" to Tuesday's results will eventually be proven incorrect, the stock price has continued to fluctuate.

Cramer believes the fast-growing footwear company's fantastic quarter and encouraging guidance make the stock a screaming buy, despite its 26% drop since its 2023 closing high on Aug. 9.

Cramer rhetorically questioned, "What's not to like about getting a terrific quarter for free?"

Since Monday's close before earnings, On Holding stock has climbed 2%, which is roughly in line with the overall market performance over that time. On Tuesday, shares of On Holding dropped 3.4% as investors first chewed over the report. That was followed by an 8.3% rebound Wednesday, and a 2.3% drop Thursday.

Cramer argued that investors with longer time horizons should not be concerned about the timing of sales, as On Holding's strong third-quarter results may have been pulled in from the fourth quarter.

Cramer stated that On Holding's full-year sales outlook calls for 46% growth, up from the 39% the firm guided for at the beginning of the year. "No need to sweat the small stuff when the underlying story is this good," he added.

On Holding's stock performance this week may have been affected by concerns about the company's less aggressive approach to selling shoes at third-party stores, but Cramer believes these concerns are exaggerated because the company's primary focus is on direct-to-consumer sales.

Cramer stated that he is confident that On Holding will have a strong holiday season, surpassing its conservative forecast. Looking back, he believes the handwringing on Tuesday will appear foolish.

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