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

Peloton (PTON) closed at $162.76 in the latest trading session, marking a +0.96% move from the prior day. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Heading into today, shares of the exercise bike and treadmill company had gained 52.92% over the past month, outpacing the Consumer Discretionary sector's gain of 7.1% and the S&P 500's gain of 3.8% in that time.

Wall Street will be looking for positivity from PTON as it approaches its next earnings report date. On that day, PTON is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 150%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 119.25% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.45 per share and revenue of $3.94 billion. These totals would mark changes of +240.63% and +115.67%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PTON. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 8.55% higher. PTON is currently a Zacks Rank #3 (Hold).

Digging into valuation, PTON currently has a Forward P/E ratio of 359.84. This valuation marks a premium compared to its industry's average Forward P/E of 14.7.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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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