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

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Peloton (PTON - Free Report) closed at $95.23 in the latest trading session, marking a +0.89% move from the prior day. This change outpaced the S&P 500's 2.37% loss on the day. Meanwhile, the Dow lost 1.92%, and the Nasdaq, a tech-heavy index, lost 3.02%.

Heading into today, shares of the exercise bike and treadmill company had gained 42.05% over the past month, outpacing the Consumer Discretionary sector's gain of 1.33% and the S&P 500's loss of 2.31% in that time.

PTON will be looking to display strength as it nears its next earnings release. In that report, analysts expect PTON to post earnings of $0.13 per share. This would mark year-over-year growth of 110.08%. 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.

It is also important to note the recent changes to analyst estimates for PTON. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 202.03% higher. PTON is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note PTON's current valuation metrics, including its Forward P/E ratio of 376.06. This valuation marks a premium compared to its industry's average Forward P/E of 16.55.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PTON in the coming trading sessions, be sure to utilize Zacks.com.


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