10 Best Sporting Goods Stocks To Invest In Now

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

Number of Hedge Fund Holders: 35

Peloton Interactive, Inc. (NASDAQ:PTON) is a leading provider of connected fitness solutions, offering a range of products. The company sells its products through various channels, including e-commerce, direct sales, retail showrooms, and third-party retailers. Founded in 2012, Peloton Interactive, Inc. (NASDAQ:PTON) is headquartered in New York.

Peloton Interactive, Inc. (NASDAQ:PTON) announced its first-quarter fiscal 2025 results, exceeding expectations for subscribers and revenue. The company is focused on improving unit economics and profitability while continuing to invest in innovation. Peloton Interactive, Inc. (NASDAQ:PTON) is on track to deliver over $200 million in annualized cost savings by the end of fiscal year 2025.

The company is also investing in content, product development, and marketing to drive long-term growth. Peloton Interactive, Inc. (NASDAQ:PTON) raised its full-year fiscal 2025 adjusted EBITDA guidance to $240 million to $290 million and its free cash flow target to at least $125 million.

To address sales growth challenges, Peloton Interactive, Inc. (NASDAQ:PTON) is expanding its retail presence through partnerships with major retailers like Costco and is seeing promising results in international markets, especially in Germany’s retail channels. Moreover, Peter Stern, the newly appointed CEO, is expected to take over in January 2025. He is a seasoned leader with a strong track record of driving innovation and growth.

Peloton Interactive, Inc. (NASDAQ:PTON) strategic cost-cutting initiatives and partnerships to drive growth make the stock a compelling investment option. Here’s what Patient Capital Management said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q1 2025 investor letter:

“Peloton Interactive, Inc. (NASDAQ:PTON) declined in the first quarter, hitting its lowest per share valuation in late March since becoming a public company. The company has taken drastic action to right-size the extremely bloated cost structure, expand sales channels (Amazon, Dick’s Sporting Goods), and test other ways to reinvigorate growth. The company is hyper focused on reaching positive free cash flow generation, but the path was pushed out. We continue to believe the value of the business lives in the high-margin, sticky subscription piece of the business. We think at current valuation, the company will either successfully turn things around or be a take-out target.”