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

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Peloton (PTON - Free Report) closed at $111.31 in the latest trading session, marking a +0.51% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.4%. Elsewhere, the Dow lost 1.34%, while the tech-heavy Nasdaq lost 1.57%.

Heading into today, shares of the exercise bike and treadmill company had gained 37.34% over the past month, outpacing the Consumer Discretionary sector's gain of 0.45% and the S&P 500's loss of 0.46% 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.

PTON's full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $3.58 billion. These results would represent year-over-year changes of +178.13% and +96.29%, respectively.

Investors should also note any recent changes to analyst estimates for PTON. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 249.4% higher within the past month. PTON currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PTON has a Forward P/E ratio of 441.2 right now. For comparison, its industry has an average Forward P/E of 16.49, which means PTON is trading at a premium to the group.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.

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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