5 Best Weight Loss Stocks to Buy Now

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

Number of Hedge Fund Holders: 64

Peloton Interactive, Inc. (NASDAQ: PTON) is a provider of interactive fitness products in North America and internationally. The company’s products include the Peloton Bike and the Peloton Tread, and it ranks 2nd on our list of the best weight loss stocks to buy now.

This June, Peloton Interactive, Inc.’s (NASDAQ: PTON) corporate wellness offering has received favorable responses from users and analysts alike. Bank of America commented that the program is raking in more demand for Peloton Interactive, Inc. (NASDAQ: PTON) products, and the firm has raised its price target on the stock to $108 in light of Peloton Interactive, Inc.’s (NASDAQ: PTON) presentation at the BofA global technology conference as well. In their fiscal third-quarter report 2021, Peloton Interactive, Inc. (NASDAQ: PTON) had an EPS of $0, beating estimates by $0.08. Its revenue of $1.26 billion represented a 140.62% growth year over year and beat estimates by $140.96 million. It has a gross profit margin of 40.28%, and the stock has gained 113.98% in the past year.

By the end of the first quarter of 2021, 64 hedge funds out of the 866 tracked by Insider Monkey held stakes in Peloton Interactive, Inc. (NASDAQ: PTON). The total value of their stakes was roughly $3.96 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of about $5.66 billion.

Artisan Partners, a high value-added investment management firm, mentioned Peloton Interactive, Inc. (NASDAQ: PTON) in their first-quarter 2021 investor letter. Here‘s what they said:

“Among our bottom Q1 contributors was Peloton Interactive. Peloton’s growth has accelerated throughout the pandemic as consumers replace in-person gym workouts with the company’s connected bikes and online classes. This has increased brand awareness, decreased the need for advertising spending and quickly proved the company’s high-margin, recurring revenue business model. These benefits were on clear display in Peloton’s Q4 results, which showed subscription growth trends remain robust entering 2021. However, this demand, combined with global supply chain bottlenecks, is resulting in bike shipment delays and has led the company to spend $100 million in the coming months to expedite deliveries. While this will pressure near-term profits, we expect trends to improve later this year as the company’s investments in manufacturing capacity bear fruit and as it rolls out a new, affordable treadmill. We trimmed our position early in the quarter based on valuation concerns, but the stock’s subsequent selloff brought the valuation back into an attractive range, in our view.”