Peloton Interactive Inc. (NASDAQ: PTON) is an innovative fitness company that develops smart fitness devices. Peloton owners can subscribe to a membership service that offers live streaming boutique fitness classes that are delivered directly to a large screen interface on the Peloton Bike.
The popularity of the Peloton Bike has increased significantly over the past year, and the company is rapidly growing. The convenience and affordability of home classes are leading many consumers to cancel expensive gym memberships and choose Peloton instead.
In the first half of the 2021 fiscal year, the company’s revenue increased by 162.5%, hitting $1.8 billion for the first time. Subscription revenue was up by 143% year-over-year, while sales of connected fitness devices increased almost threefold. In the most recent quarter, active paid members increased to 4.4 million, compared to 2 million in the year ago period.
Peloton’s success is likely to continue even as global restrictions from the Coronavirus Pandemic are eased. Customers who have been enjoying their bikes and live workout classes will see little value in returning to gyms. Peloton’s continued growth and strong financial performance are expected to generate a stock price upside this year. With an average target price of $167.75, this is one of the best stock picks in 2021.
Key Data:
- 1 Year Price Growth: 99%
- YTD Price Growth: -25.69%
- 3 Month Price Growth: -11.77%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.