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 in +14.97% Uptrend, rising for three consecutive days on June 02, 2023
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where PTON advanced for three days, in of 220 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PTON's RSI Indicator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 31, 2023. You may want to consider a long position or call options on PTON as a result. In of 60 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PTON just turned positive on May 19, 2023. Looking at past instances where PTON's MACD turned positive, the stock continued to rise in of 30 cases over the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for PTON moved below the 200-day moving average on May 08, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 June 01, 2023. 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.
The Aroon Indicator for PTON entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady 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 (86.957) is normal, around the industry mean (23.265). P/E Ratio (0.000) is within average values for comparable stocks, (31.351). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.621). Dividend Yield (0.000) settles around the average of (0.070) among similar stocks. P/S Ratio (0.933) is also within normal values, averaging (3.808).
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 84, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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
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PTON and
Correlation & Price change
A.I.dvisor indicates that over the last year, PTON has been loosely correlated with YETI. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if PTON jumps, then YETI could also see price increases.
| Ticker / NAME | Correlation To PTON | 1D Price Change % | ||
|---|---|---|---|---|
| PTON | 100% | +8.28% | ||
| YETI - PTON | 60% Loosely correlated | +4.06% | ||
| CUK - PTON | 53% Loosely correlated | +3.14% | ||
| SEAS - PTON | 52% Loosely correlated | +3.87% | ||
| PII - PTON | 52% Loosely correlated | +4.77% | ||
| LTH - PTON | 50% Loosely correlated | +5.53% | ||
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