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Peloton Interactive, Inc. (PTON) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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Peloton Interactive, Inc. (PTON) closed at $158.13 in the latest trading session, marking a +1.5% move from the prior day. This change outpaced the S&P 500's 0.03% gain on the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.55%.

Heading into today, shares of the company had lost 4.28% over the past month, lagging the Consumer Discretionary sector's gain of 2.85% and the S&P 500's gain of 3.99% in that time.

PTON will be looking to display strength as it nears its next earnings release. In that report, analysts expect PTON to post earnings of $0.10 per share. This would mark year-over-year growth of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, up 119.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.43 per share and revenue of $3.94 billion, which would represent changes of +234.38% and +115.67%, respectively, from the prior year.

Any recent changes to analyst estimates for PTON should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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 remained stagnant within the past month. PTON is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PTON has a Forward P/E ratio of 366.17 right now. This represents a premium compared to its industry's average Forward P/E of 15.22.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.


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