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

Peloton (PTON) closed at $39.19 in the latest trading session, marking a +1.27% move from the prior day.

This story originally appeared on Zacks

Peloton (PTON) closed the most recent trading day at $39.19, moving +1.27% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.

- Zacks

Prior to today's trading, shares of the exercise bike and treadmill company had lost 12.21% over the past month. This has lagged the Consumer Discretionary sector's loss of 9.2% and the S&P 500's loss of 2.63% in that time.

Investors will be hoping for strength from Peloton as it approaches its next earnings release. The company is expected to report EPS of -$1.28, down 811.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.16 billion, up 9.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.82 per share and revenue of $4.55 billion, which would represent changes of -340.63% and +13.19%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Peloton. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.52% lower. Peloton is currently sporting a Zacks Rank of #3 (Hold).

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.

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

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Peloton Interactive, Inc. (PTON): Free Stock Analysis Report


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