Please ensure Javascript is enabled for purposes of website accessibility

2 Beaten-Down Growth Stocks to Buy in October

By Neil Rozenbaum – Oct 7, 2021 at 11:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Pinterest and Peloton are both down 30% since they reported earnings, but they could be poised for a move upward.

In this video, I will be talking about Peloton (PTON -3.56%) and Pinterest (PINS -5.06%) and the moves both companies have been making this quarter. You can find the video below.

Peloton

The stock is down due to fears that people might stop using Peloton's services or buying the equipment. But the company has actually been making some moves this quarter that will bear fruit in the future.

  • The company launched Peloton Apparel. Obviously, we shouldn't expect it to turn into Lululemon Athletica overnight or generate a large part of the company's revenue, but what it will do is open up a new revenue stream and lead to more exposure.
  • Peloton Tread is now available in Germany as well as the U.S., U.K., and Canada, and it will probably roll out in other countries soon. 
  • The company is building its first U.S. manufacturing facility.

Pinterest

The stock is down 30%, mainly because of fears that the number of monthly active users will not grow any further. However, revenue has grown 125% year over year. But just like Peloton, the company has been making moves this quarter:

  • According to the director of Pinterest business in Latin America, the user base is growing. 
  • Pinterest has hired a new country manager in Japan who spent seven years working for Amazon as head of agency and ad tech sales. 
  • According to a survey by Nielsen, the platform has 14.5 million unique visitors per month in Germany, and they come with one intention -- to shop. Of monthly active users, 82% say they are actively searching for products to buy on Pinterest. 
  • Pinterest has introduced new e-commerce features such as Slideshow for Collections.

For full insights, do watch the video below.

*Stock prices used were the closing prices of Oct. 6, 2021. The video was published on Oct. 7, 2021.

Neil Rozenbaum owns shares of Pinterest and Peloton Interactive. The Motley Fool owns shares of and recommends Peloton Interactive and Pinterest. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Pinterest Stock Quote
Pinterest
PINS
$22.72 (-5.06%) $-1.21
Peloton Interactive Stock Quote
Peloton Interactive
PTON
$12.46 (-3.56%) $0.46
Amazon.com Stock Quote
Amazon.com
AMZN
$88.25 (-3.03%) $-2.76
Lululemon Athletica Stock Quote
Lululemon Athletica
LULU
$370.00 (-2.92%) $-11.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.