Peloton (PTON) shares ended the last trading session 10.8% higher at $5.84. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11% gain over the past four weeks.

The company is capitalizing on its path to sustainable growth, highlighted by its initiatives to streamline operations and improve product offerings. Additionally, the emphasis on software-driven improvements is promising.

This exercise bike and treadmill company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +65.9%. Revenues are expected to be $573.48 million, down 3.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Peloton, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PTON going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Peloton is a member of the Zacks Leisure and Recreation Products industry. One other stock in the same industry, American Outdoor Brands, Inc. (AOUT), finished the last trading session 1.3% lower at $9.35. AOUT has returned 4.6% over the past month.

For American Outdoor Brands , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. This represents a change of -12% from what the company reported a year ago. American Outdoor Brands currently has a Zacks Rank of #1 (Strong Buy).

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Peloton Interactive, Inc. (PTON) : Free Stock Analysis Report

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