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

Peloton (PTON) closed at $112.74 in the latest trading session, marking a +1.07% move from the prior day. This move outpaced the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 1.05%.

Prior to today's trading, shares of the exercise bike and treadmill company had lost 23.85% over the past month. This has lagged the Consumer Discretionary sector's gain of 2.82% and the S&P 500's gain of 0.36% in that time.

Investors will be hoping for strength from PTON as it approaches its next earnings release. On that day, PTON is projected to report earnings of -$0.11 per share, which would represent year-over-year growth of 45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 112.54% from the year-ago period.

PTON's full-year Zacks Consensus Estimates are calling for earnings of $0.30 per share and revenue of $4.1 billion. These results would represent year-over-year changes of +193.75% and +124.64%, respectively.

Investors might also notice recent changes to analyst estimates for PTON. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 368.15 right now. This represents a premium compared to its industry's average Forward P/E of 15.94.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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.



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