PTON, LAST CHANCE!Hello fellow traders and investors, here's another trade idea.
This is an update on my previous idea on Peloton. PTON has recently pulled back to the support area, if PTON makes a full recovery it offers around a 55 to 65% ROI.
Technicals:
The Macd indicates that it's oversold
The RSI is relatively oversold
Bearish volume is getting exhausted and it looks like we might see some buying pressure
When To Buy:
Now
When To Sell:
I recommend selling at its previous high
Fundamentals: PTON operates as an at-home fitness platform for live and on-demand indoor cycling classes. The company connected, technology, fitness, and the streaming of immersive, instructor-led classes for its clients. Peleton was made for busier individuals that want to go to the gym but Peleton makes the experience much better by for example reducing the commute, offering an in-home fitness session while still having an amazing instructor. Peloton has a P/E of 202.57 which definitely isn't great however there is a good reason for that and it's because of their growth in sales of 128% Q/Q, an earnings per share growth of 192% Q/Q this growth can explain their valuation since the investors in this scenario are pricing this stock on what it will potentially be worth in the future, a short float of 6% and a profit margin of 5.60%.
Rating: 80/100 the technicals are okay since this recent surge could act as a head & shoulders formation and the fundamentals are pretty good.
I hope you enjoyed this quick analysis and many more to come.
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Thanks.
