The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Shares of exercise equipment company Peloton (NASDAQ:PTON)
jumped 5.5% in the morning session after Macquarie upgraded the stock from Hold to Buy, citing the turnaround potential. The firm noted that management's continued optimism about near-term cash generation, as emphasized in the latest earnings release, strengthened the investment case at current valuation levels.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Shares of exercise equipment company Peloton (NASDAQ:PTON)
fell 5.4% in the afternoon session after the company reported weak first quarter 2025 results which included an EBITDA beat, but revenue was merely in line and full-year EBITDA guidance fell slightly short of expectations. Revenue declined 13% year over year, weighed down by a 27% drop in hardware sales, even as subscription revenue held steady and churn remained low. Overall, this was a softer quarter, and the market needs more convincing performance from this turnaround.
The company raised its full-year revenue guidance to between $975 million and $1.025 billion, up from its previous guidance of between $300 million and $350 million.
Exercise equipment company Peloton (NASDAQ:PTON) met Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 13.1% year on year to $624 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $2.46 billion at the midpoint. Its GAAP loss of $0.12 per share was 97.4% below analysts’ consensus estimates.
Stronger profitability and consistent cash flow generation mark Peloton's operational progress, leading to increased analyst confidence in its recovery path.
Shares of exercise equipment company Peloton (NASDAQ:PTON)
jumped 6.4% in the pre-market session after Truist analysts upgraded the stock's rating from Hold to Buy, signaling renewed confidence in the company's turnaround efforts. In their note, the firm emphasized that more than three years after initially downgrading Peloton, they saw tangible improvements in the company's fundamentals.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible."
His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
