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

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Peloton (PTON - Free Report) closed the most recent trading day at $108.07, moving +0.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%.

Heading into today, shares of the exercise bike and treadmill company had lost 9.92% over the past month, lagging the Consumer Discretionary sector's loss of 0.31% and the S&P 500's gain of 3.51% in that time.

Investors will be hoping for strength from PTON as it approaches its next earnings release, which 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, our latest consensus estimate is calling for revenue of $925.4 million, up 52.43% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for PTON. These revisions help to show the ever-changing nature of 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.

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

Valuation is also important, so investors should note that PTON has a Forward P/E ratio of 190.95 right now. This represents a premium compared to its industry's average Forward P/E of 11.88.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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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