In the latest trading session, Peloton (PTON) closed at $121.55, marking a +1.57% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.02%.
Prior to today’s trading, shares of the exercise bike and treadmill company had lost 1.79% over the past month. This has was narrower than the Consumer Discretionary sector’s loss of 2.13% and lagged the S&P 500’s gain of 3.01% in that time.
Investors will be hoping for strength from PTON as it approaches its next earnings release. The company is expected to report EPS of -$0.45, down 266.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $925.4 million, up 52.43% from the year-ago period.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.37% higher. PTON is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, PTON is currently trading at a Forward P/E ratio of 211.98. Its industry sports an average Forward P/E of 12.97, so we one might conclude that PTON is trading at a premium comparatively.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.