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

In the latest trading session, Peloton (PTON) closed at $64.36, marking a -0.92% move from the previous day. This change lagged the S&P 500's daily gain of 1.4%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 2.13%.

Prior to today's trading, shares of the exercise bike and treadmill company had gained 3.19% over the past month. This has lagged the Consumer Discretionary sector's gain of 4.93% and the S&P 500's gain of 4.78% in that time.

PTON will be looking to display strength as it nears its next earnings release, which is expected to be September 10, 2020.

Investors might also notice recent changes to analyst estimates for PTON. These recent revisions tend to reflect the evolving nature of short-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. 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 12.77% higher. PTON is currently a Zacks Rank #2 (Buy).

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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