10 Best Low Priced Growth Stocks To Invest In

5. Peloton Interactive, Inc. (NASDAQ:PTON)

Revenue CAGR last 5 years: 36.70%

Stock price as of April 7th close: $5.15

Number of Hedge Fund Holders: 49

​Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness technology company offering internet-connected exercise equipment such as bikes, treadmills, rowers, and others, which stream live and on-demand fitness classes through a subscription service. The company’s competitive advantage is based on serving a subcategory of sports lovers who are tech-savvy and prefer smart workouts at home. PTON also provides a digital app that offers paid access to various workout classes, which makes it easier to train at home without fitness coaches.

Peloton Interactive, Inc. (NASDAQ:PTON) demonstrated strong financial improvements in the latest Q2 2025, with adjusted EBITDA reaching $58 million, representing a whopping $140 million improvement YoY. The company achieved a double-digit Connected Fitness Products gross margin of 12.9% for the first time in over 3 years, driven by a favorable premium product mix and disciplined discount alignment. Consolidated free cash flow reached $106 million, marking the fourth consecutive quarter of positive FCF and showing a $143 million improvement on a YoY basis. The company also successfully reduced net debt by 30% YoY, demonstrating significant progress in deleveraging efforts and positioning itself to withstand any potential economic slowdown.

Member engagement showed strong metrics with over 2 million unique members completing Strength training, bootcamp, Pilates, or yoga workouts in Q2. Peloton Interactive, Inc. (NASDAQ:PTON) achieved meaningful improvements in member happiness with Net Promoter Scores exceeding 70 across all Bike and Tread products. Churn rates remained exceptionally low with an average net monthly Paid Connected Fitness Subscription churn of 1.4% in Q2, with churn being 60% lower for subscriptions where members engage with 2 or more disciplines per month versus just one. The company is on track to exceed $200 million of run-rate cost savings by the end of fiscal year 2025 while maintaining a focus on innovation and member experience. PTON ranks 5th on our list of best low priced stocks to buy.