Peloton (PTON) Gains As Market Dips: What You Should Know

In the latest trading session, Peloton (PTON) closed at $131.44, marking a +0.36% move from the previous day. This move outpaced the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.8%.

Heading into today, shares of the exercise bike and treadmill company had gained 53.27% over the past month, outpacing the Consumer Discretionary sector's gain of 4.04% and the S&P 500's gain of 5.22% in that time.

Investors will be hoping for strength from PTON as it approaches its next earnings release. The company is expected to report EPS of $0.13, up 110.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $727.51 million, up 219.08% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.25 per share and revenue of $3.58 billion, which would represent changes of +178.13% and +96.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PTON. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PTON is currently a Zacks Rank #3 (Hold).

Digging into valuation, PTON currently has a Forward P/E ratio of 521.79. This represents a premium compared to its industry's average Forward P/E of 16.58.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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