Markets

Peloton (PTON) Gains But Lags Market: What You Should Know

Peloton (PTON) closed the most recent trading day at $63.13, moving +0.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.91%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.59%.

Prior to today's trading, shares of the exercise bike and treadmill company had gained 26.13% over the past month. This has outpaced the Consumer Discretionary sector's gain of 4.53% and the S&P 500's gain of 5.26% in that time.

Wall Street will be looking for positivity from PTON as it approaches its next earnings report date.

Investors might also notice recent changes to analyst estimates for PTON. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 24.55% higher. PTON is currently a Zacks Rank #2 (Buy).

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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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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