Peloton (PTON) shares soared 18.8% in the last trading session to close at $7.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.4% loss over the past four weeks.
Peloton shares jumped on Wednesday following an upgrade to Buy from UBS analyst, per media reports. The move reflected renewed investor confidence in the company’s turnaround potential.
This exercise bike and treadmill company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +25%. Revenues are expected to be $579.86 million, down 9.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Peloton, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PTON going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Peloton belongs to the Zacks Leisure and Recreation Products industry. Another stock from the same industry, Amer Sports, Inc. (AS), closed the last trading session 1.3% higher at $38.85. Over the past month, AS has returned 1.8%.
Amer Sports, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. Compared to the company's year-ago EPS, this represents a change of -60%. Amer Sports, Inc. currently boasts a Zacks Rank of #2 (Buy).
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Peloton Interactive, Inc. (PTON): Free Stock Analysis Report Amer Sports, Inc. (AS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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