10 Best US Stocks to Buy Under $5

2. Peloton Interactive Inc (NASDAQ:PTON)

Number of Hedge Fund Holders: 38

Current Share Price: $4.77

Peloton Interactive Inc (NASDAQ:PTON) is a consumer cyclical company that operates a fitness platform. It creates exercise gear for home use that is equipped with digital displays, allowing it to be used for watching online classes or listening to music. It offers connected fitness products under the Peloton Bike Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names.

Peloton Interactive Inc (NASDAQ:PTON) has been one of the biggest disappointments; its market value has shrunk over the past few years as losses grew so large that they threatened the company’s survival. Nevertheless, the company’s fortunes and prospects show signs of improvement going on to its better-than-expected fiscal fourth-quarter results. The results show that business is finally mounting a turnaround.

Revenue in the quarter rose for the first time in 10 months by 0.2% to $643.6 million, exceeding forecasts at $630.6 million. The increase came as the company achieved a 2.3% increase in the subscription area, reaching $431 million.

Peloton Interactive Inc (NASDAQ:PTON) achieved significant gains in its financial performance, as its gross profit margin increased significantly following the closure of its Precor manufacturing plant in North Carolina. This move significantly improved its connected fitness gross margin, rising from -37.5% to 8.3%. It contributed to a rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from a deficit of $34.7 million to $70.3 million.

Regarding its financial health, the company disclosed a per-share loss of $0.08, an improvement from a loss of $0.68 a share in the same period last year but lower than the anticipated loss of $0.17. A total of 38 funds in Insider Monkey’s database had Peloton Interactive Inc (NASDAQ:PTON) shares in their portfolios in the second quarter of 2024.