5 Best Hot Stocks To Buy Now

In this article, we discuss 5 best hot stocks to buy now. If you want to see more stocks in this selection, check out 13 Best Hot Stocks To Buy Now. 

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

Average 3-month Volume as of February 6: 13.62 million

YTD Share Price Gains as of February 6: 90.79%

Number of Hedge Fund Holders: 45

Peloton Interactive, Inc. (NASDAQ:PTON) is a New York-based company that operates interactive fitness platforms in North America and internationally, under the Peloton Bike, Peloton Bike+, Peloton Tread, and Peloton Tread+ names. Peloton Interactive, Inc. (NASDAQ:PTON) is one of the best momentum stocks to monitor. For FQ3 2023, the company expects revenue in the range of $690 million to $715 million, versus a consensus of $694.51 million. 

On February 2, Needham analyst Bernie McTernan increased the firm’s target price for Peloton Interactive, Inc. (NASDAQ:PTON) to $20 from $14 while maintaining a Buy rating after the release of its Q2 results. The analyst noted that the company’s revenue exceeded expectations and progress has been made in improving product gross margins. The analyst pointed out that previously, declining product margins and rising fixed costs overshadowed the benefits of a Peloton subscription, but this trend is now diminishing.

According to Insider Monkey’s data, Peloton Interactive, Inc. (NASDAQ:PTON) was part of 45 hedge fund portfolios as of the end of the third quarter of 2022, compared to 39 in the prior quarter. Anand Desai’s Darsana Capital Partners is a prominent stakeholder of the company, with 10 million shares worth $69.30 million. 

Here is what Merion Road Capital specifically said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q3 2022 investor letter:

“Peloton Interactive, Inc. (NASDAQ:PTON) is quite a different story. You may recall from my Q1 letter that I initiated a position in the stock given the potential for a new CEO to leverage the company’s passionate and engaged user base. The investment had meaningful upside potential (multiples of the then trading price), but also presented real downside risk; as such, I kept our exposure to just a few percentage points of the portfolio. Fast forward six months and underlying trends like churn, engagement, and new users weakened dramatically. I sold our shares as the likelihood for the company to achieve financial success has become increasingly remote.”