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

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Peloton (PTON - Free Report) closed at $86.70 in the latest trading session, marking a -0.4% move from the prior day. This move lagged the S&P 500's daily gain of 1.15%.

Coming into today, shares of the exercise bike and treadmill company had lost 13.81% in the past month. In that same time, the Consumer Discretionary sector lost 4.12%, while the S&P 500 lost 4.67%.

Wall Street will be looking for positivity from PTON as it approaches its next earnings report date. The company is expected to report EPS of -$0.39, down 295% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $802.71 million, up 5.91% from the year-ago period.

PTON's full-year Zacks Consensus Estimates are calling for earnings of -$1.98 per share and revenue of $5.37 billion. These results would represent year-over-year changes of -209.38% and +33.6%, respectively.

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.

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.

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 remained stagnant within the past month. PTON is currently sporting a Zacks Rank of #5 (Strong Sell).

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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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