Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 22 Nov, 24 | PTON | Speculative Buy | USD 9.06 | USD 9.84 | USD 10.4 | 7 days | 14.8% |
Data Powered by EOD Historical Data (“EODHD”).
Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.
Operating Efficiency: Asset Turnover of 0.27x in Q1 FY25 vs 0.22x in Q1 FY24
Higher Profitability: Gross Margin of 51.8% in Q1 FY25 vs Industry Median of 40.9%
Higher Cash Cycle: 122.8 Days in Q1 FY25 vs Industry Median of 95.4 Days
Lower Liquidity: Current Ratio of 2.01x in Q1 FY25 vs 2.12x in Q1 FY24
Peloton's key risks include intense competition, subscriber retention challenges, reliance on a fluctuating demand for fitness products, and profitability concerns amid high customer acquisition costs.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 9.06 | 7.9 | 9.84 | 10.4 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the weekly chart)
The share price of PTON took support at key levels and drifted higher, accompanied by robust trading volume, suggesting the potential for short-term gains. As the stock continues to rise, it is likely to encounter a key resistance level at USD 10.43, which may be tested in the short term, potentially within the next 2-4 weeks. If the stock successfully breaches this level, it could lead to further buying momentum and potentially extended gains in the stock.
Technical Indicators Analysis (On the weekly chart)
On the weekly chart, the 14-period Relative Strength Index (RSI) is trending higher, indicating a positive bias. Trading volumes seem to confirm this upward trend. Furthermore, the stock price moving above its 21-day Simple Moving Average (SMA), supporting positive bias.
As per the above-mentioned price action and technical indicators analysis, Peloton Interactive, Inc. (NASDAQ: PTON) is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. I
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Leisure
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PTON Peloton Interactive Inc |
-0.1 1.06% | 9.34 | - | 153.85 | 0.48 | 16.00 | 1.06 | -4.498 |
| OLCLY Oriental Land Co Ltd ADR |
0.21 1.00% | 21.28 | 80.80 | 57.47 | 0.11 | 9.79 | 0.11 | 0.30 |
| OLCLF Oriental Land Co. Ltd |
- -% | 20.90 | 76.46 | 60.98 | 0.11 | 9.30 | 0.11 | 0.30 |
| ANPDY ANTA Sports Products Ltd ADR |
5.61 2.26% | 254.00 | 17.89 | 14.95 | 0.48 | 3.61 | 3.02 | 10.20 |
| ANPDF ANTA Sports Products Ltd |
- -% | 9.75 | 16.11 | 14.97 | 0.43 | 3.61 | 3.02 | 10.20 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 21, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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