Peloton has a manufacturing problem, but this may solve it
According to Peloton's website, there is a 10-week wait time for its most expensive bike. Consumers don't like waiting 10 weeks for anything.
The long wait times are a signal of the strong demand for Peloton's product, but also underscore the rapid shift towards digital everything, including exercise. Peloton's stationary bikes combined with its interactive technology give the feel of exercising with community from the comfort of one's own home. A perfect solution in a pandemic, which is why its connected-fitness subscriptions grew 137% year-over-year and its digital subscriptions grew 382%.
Peloton has a manufacturing problem, however, with all of its bikes built by third-party manufacturers in Taiwan. That problem may be addressed with Peloton's acquisition of fitness-equipment manufacturer Precor Inc., in a $420 million cash deal announced on Monday. Precor will give Peloton 625,000 square feet of U.S. manufacturing capacity, which could see Peloton manufacturing bikes domestically by the end of 2021. Will it be soon enough?
Below, A.I.dvisor compares Peloton with a traditional gym behemoth, Planet Fitness.
PTON's RSI Indicator ascends from oversold territory
The RSI Oscillator for PTON moved out of oversold territory on November 21, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 36 similar instances when the indicator left oversold territory. In of the 36 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PTON advanced for three days, in of 268 cases, the price rose further within the following month. The odds of a continued upward trend are .
PTON may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 19, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PTON as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PTON turned negative on November 19, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PTON declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PTON entered a downward trend on December 02, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. PTON’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (8.010). P/E Ratio (0.000) is within average values for comparable stocks, (44.757). PTON's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (3.018). PTON has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.031). P/S Ratio (1.058) is also within normal values, averaging (36.239).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PTON’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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General Information
an interactive fitness platform, which engages in the operation of in-studio fitness classes, fitness clubs, at-home fitness equipment & content and health & wellness apps
Industry RecreationalProducts
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