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

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Peloton (PTON) closed at $9.49 in the latest trading session, marking a +1.71% move from the prior day. This move outpaced the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.

Heading into today, shares of the exercise bike and treadmill company had gained 1.63% over the past month, lagging the Consumer Discretionary sector's gain of 5.91% and the S&P 500's gain of 6.69% in that time.

Investors will be hoping for strength from Peloton as it approaches its next earnings release. On that day, Peloton is projected to report earnings of -$0.70 per share, which would represent year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $683.15 million, down 27.08% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Peloton. 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. 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. Within the past 30 days, our consensus EPS projection has moved 15.03% lower. Peloton is currently a Zacks Rank #4 (Sell).

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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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Peloton Interactive, Inc. (PTON) : Free Stock Analysis Report
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