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

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Peloton (PTON - Free Report) closed the most recent trading day at $120.21, moving -0.6% from the previous trading session. This move lagged the S&P 500's daily gain of 0.6%.

Heading into today, shares of the exercise bike and treadmill company had lost 2.09% over the past month, outpacing the Consumer Discretionary sector's loss of 4.9% and lagging the S&P 500's gain of 1.21% in that time.

Wall Street will be looking for positivity from PTON as it approaches its next earnings report date. This is expected to be August 26, 2021. In that report, analysts expect PTON to post earnings of -$0.45 per share. This would mark a year-over-year decline of 266.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $925.4 million, up 52.43% from the year-ago period.

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. 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.

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 remained stagnant. PTON currently has a Zacks Rank of #3 (Hold).

Investors should also note PTON's current valuation metrics, including its Forward P/E ratio of 214.21. This represents a premium compared to its industry's average Forward P/E of 12.84.

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

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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