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Peloton Interactive, Inc. (PTON) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Peloton Interactive, Inc. (PTON) closed at $165.25, marking a -1.3% move from the previous day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the company had gained 24.94% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.79% and the S&P 500's gain of 4.12% in that time.

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 $0.10, up 150% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, up 119.06% from the prior-year quarter.

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 should also note any recent changes to analyst estimates for PTON. 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.

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.

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 1.59% higher within the past month. PTON is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that PTON has a Forward P/E ratio of 373.7 right now. This represents a premium compared to its industry's average Forward P/E of 15.41.

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 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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