Peloton Stock’s Strength Rating Jumps To 82; Can It Catch Lightning In A Bottle Again?

Exercise machine and workout platform Peloton went on a monster run in 2020 and early this year as stay-at-home workers sought a way to exercise while sheltering in place. Can Peloton Interactive (PTON) do it again? One thing in its favor is that many workers are opting to continue working at home even as the economy reopens on a limited basis. The Relative Strength (RS) Rating for Peloton stock on Thursday jumped to 82, up from 71 the prior trading session.


The 82 RS rating means that Peloton stock is in the top 18% of all stocks in price performance over the past year. It’s a significant move because market research shows that the best stocks often have an 80 or better RS Rating as they launch their biggest price moves.

Peloton Stock Health Improves

Peloton stock’s relative strength line, drawn in blue on every MarketSmith chart, recently rose to its highest point since early April. However, it’s still well off of highs set earlier this year. The RS line compares a stock’s performance vs. the S&P 500.

And New York-based Peloton’s Accumulation/Distribution Rating, an indicator of buying by big institutional investors, is B+ on an A+ to E scale. The B+ rating indicates relatively heavy buying.

Peloton stock soared 632% from an intraday low of 17.70 in late March 2020 to a high of 129.70 on July 7 this year. It’s since consolidated and was trading at 120.64 Thursday afternoon, down fractionally.

Top and bottom line growth improved last quarter. Peloton lost 3 cents a share as it spends money to expand, reversing from a 20-cent per share loss the same quarter last year. Revenue soared 141% in its most recent quarter, to $1.26 billion. Revenue the prior three periods grew 172%, 232% and 128% year over year.

Other Top Performers In Group

Peloton stock holds the No. 2 rank among its peers in the Leisure-Services industry group. Recorded music licensing company WarnerM (WMG) and Hilton Grand Vacations (HGV) are also among the group’s highest-rated stocks.

See How IBD Helps You Make More Money In Stocks

Peloton Interactive is not currently near a potential buy zone. See if Peloton stock goes on to offer a new buy opportunity such as a three-weeks-tight pattern, or a rebound off of its 50-day or 10-week line.

As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.

This exclusive rating from Investor’s Business Daily measures share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock’s price performance over the last 52 weeks stacks up against all the other stocks in our database.


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