Send me real-time posts from this site at my email
Zacks

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

In the latest trading session, Peloton (PTON) closed at $122.53, marking a +1.43% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.35%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the exercise bike and treadmill company had gained 36.4% over the past month, outpacing the Consumer Discretionary sector's gain of 1.42% and the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from PTON as it approaches its next earnings release, which is expected to be November 5, 2020. The company is expected to report EPS of $0.13, up 110.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $728.08 million, up 219.33% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.25 per share and revenue of $3.61 billion. These totals would mark changes of +178.13% and +97.52%, respectively, from last year.

Any recent changes to analyst estimates for PTON should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 has moved 0.4% higher within the past month. PTON currently has a Zacks Rank of #3 (Hold).

In terms of valuation, PTON is currently trading at a Forward P/E ratio of 479.36. For comparison, its industry has an average Forward P/E of 15.45, 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 24, which puts it in the top 10% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Peloton Interactive, Inc. (PTON): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue