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Why Did Peloton Just Hit a 52-Week High?

By Rhian Hunt – Sep 1, 2020 at 1:27PM

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The company is looking for ways to give its users even greater health benefits.

Exercise equipment and streaming exercise instruction company Peloton Interactive (PTON 13.00%) traded at a new 52-week high this morning, reaching $84.56 mid-morning and setting a new price record. Though its shares have declined somewhat since, Peloton is still up more than 7% today, and trading continues to be active, raising the possibility of setting a new peak sometime before market close.

The continued climb of the company's stock comes against the backdrop of its announcement this morning that it has launched a "Health and Wellness Advisory Council" consisting of five health professionals. The team includes a cardiologist, a neurologist, a neurological medical consultant, an assistant professor of applied physiology, and a clinical neurological scientist.

A woman working out at home.

Image source: Getty Images.

According to Peloton's president, William Lynch, the council will assist the company in its efforts to "leverage scientific research and medical expertise to help us better serve our community through our content, products and platform." The press release also notes many customers say Peloton "profoundly impacted their physical, mental and emotional health."

Peloton has grown strongly this year, lifted by the winds of COVID-19 as social distancing, coronavirus-related lockdowns, and gym closures have driven people to find alternate ways to stay fit and healthy. While gyms are reopening even in New York state, the convenience and safety of Peloton's home workout model may continue to drive the company's profits higher. Investors certainly appear to think so, since today's one-year high is just the latest in a recent series of stock market triumphs for the well-positioned enterprise.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

Stocks Mentioned

Peloton Interactive Stock Quote
Peloton Interactive
PTON
$13.30 (13.00%) $1.53

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