Peloton (PTON) Gains But Lags Market: What You Should Know

Peloton (PTON) closed the most recent trading day at $8.24, moving +0.49% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.24%.

Prior to today's trading, shares of the exercise bike and treadmill company had lost 14.41% over the past month. This has lagged the Consumer Discretionary sector's loss of 12.81% and the S&P 500's loss of 9.93% in that time.

Investors will be hoping for strength from Peloton as it approaches its next earnings release. The company is expected to report EPS of -$0.65, up 48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.73 million, down 20.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.12 per share and revenue of $3.12 billion. These totals would mark changes of +54.31% and -12.77%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Peloton. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Peloton currently has a Zacks Rank of #3 (Hold).

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% 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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