Here's One Beaten-Down Stock to Avoid Even As the Bull Market Soars

In the aftermath of the 2022 bear market, many stocks are trading at significant discounts to their previous highs. This is mostly due to market sentiment changing for some companies as business fundamentals were previously detached from the stock performance. For others, however, the fall from grace has been warranted due to challenges with the business.

Unfortunately, at-home fitness company (NASDAQ: PTON) falls into the latter category. While it's true that some of its recent stock performance is due to an inflated price during pandemic-induced market exuberance, the company has also made some strategic mistakes that it's still trying to recover from. And there's a chance Peloton's stock may recover, but investors might be better off watching from the sidelines before taking a position.

When 2020 began, Peloton stock was trading for around $30 per share and the company was doing great. Peloton ended calendar year 2019 (the second quarter of fiscal 2020) with its revenue growing 77% and its connected fitness subscribers increasing by 96% year over year. Then came the COVID-19 pandemic. When we were all locked down in our homes, the idea that in-home fitness could be the way of the future became conventional wisdom in the market. Over the next year, Peloton stock rose to as high as $167.

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Source Fool.com