Peloton (PTON, $27.06) shares rebound, as it refutes production halt report
Peloton Interactive shares climbed on Friday, following Thursday’s plunge that wiped $2.5 billion off the fitness equipment maker’s market value. The company refuted reports that it will suspend production of its bikes and treadmills.
Thursday's CNBC report cited an internal memo suggesting that the group was planning to halt production for two months production due to a post-pandemic reduction in demand for its connected bikes and treadmills. CEO John Foley called this report 'false'. However, Foley mentioned that the group will 'reset' output levels and assess the size of its workforce and implement "significant corrective actions" in order to boost profits.
"We now need to evaluate our organization structure and size of our team," Foley mentioned. "And we are still in the process of considering all options ... to make our business more flexible."
Also, Peloton’s preliminary second quarter revenue projections is $1.14 billion. Its adjusted EBITDA forecast is in the region of -$270 million to -$260 million, vs. prior guidance of a loss of -$350 million.
PTON sees MACD Histogram just turned negative
PTON saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on December 05, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 48 instances where the indicator turned negative. In of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PTON moved out of overbought territory on December 02, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where PTON's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
PTON broke above its upper Bollinger Band on November 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 11, 2024. You may want to consider a long position or call options on PTON as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PTON advanced for three days, in of 294 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 203 cases where PTON Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PTON’s price grows at a higher 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 (86.957) is normal, around the industry mean (48.917). P/E Ratio (0.000) is within average values for comparable stocks, (55.184). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.499). PTON has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (0.559) is also within normal values, averaging (5.104).
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 86, 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