Peloton (PTON Stock) Makes Progress, but the Market Remains Behind: What You Should Know


The most recent trading day ended with Peloton Interactive Inc (NASDAQ:PTON) at $8.24, reflecting a movement of +0.49% from the previous trading session. The PTON stock’s daily gain was lower than the S&P 500’s increase of 1.97%. In the meantime, the Dow advanced by 1.88%, while the Nasdaq, which is focused on technology, climbed 0.24%. 

Before the trading that took place today, the exercise bike and treadmill company’s share price had dropped by 14.41% over the previous month. This has lagged behind the Consumer Discretionary sector’s loss of 12.81% and the S&P 500’s loss of 9.93% in that time. 

PTON Stock Price Analysis

As Peloton (PTON stock) gets closer to reporting its next results, investors will be hopeful the company continues to show strength. EPS of -$0.65 are anticipated, up 48% from last year’s period. According to the Zacks Consensus Estimate for revenue, net sales are expected to be $638.73 million, which is down 20.67% from the same period last year. 

When looking at the entire year, our Zacks Consensus Estimates reveal that analysts anticipate earnings of $2.12 per share and sales of $3.12 billion. These totals would mark changes of +54.31% and -12.77%, respectively, from last year.

Investors should also be aware of any changes to the analyst community’s forecasts regarding Peloton (PTON stock). More recent revisions tend to reflect the most recent near-term company trends. Keeping this in mind, we might look at positive estimate revisions as evidence of an optimistic attitude towards the company’s future business prospects.

Based on the study that we have conducted, we feel that these estimate adjustments are closely tied to near-term stock movements. To benefit from this trend, we created the Zacks Rank. Our approach provides a clear, usable grading model by taking into consideration these estimation modifications. 

The Zacks Rank system, which goes from #1 (Strong Buy) to #5 (Strong Sell), has an excellent track record of outperformance, with #1 stocks having an average yearly return of +25% since 1988. The Zacks Rank system was developed by Zacks Investment Research, which was founded in 1988. Peloton currently has a Zacks Rank of #3 (Hold).

The Zacks Consensus EPS estimate increased by 0.06% over the previous month.

 The consumer discretionary sector includes the leisure and recreation products industry. With a Zacks Industry Rank of 152, this sector now occupies the lowest 40% of all 250+ sectors. 

The strength of our industry groupings is evaluated using the Zacks Industry Rank, which does so by calculating the average Zacks Rank of the individual stocks that are contained inside the groups. According to our research findings, the industries that received ratings in the top 50% do much better than those that received ratings in the bottom 50%.


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