As you can see, the oldest company, Nike was listed nearly 40 years ago, and the youngest, Peloton, is barely 9 months old in the public market.
IPO Date: This is the date each of the companies went public. To really understand what they mean, look at the table below where I have calculated a few variances. The table above compares all the metrics we have discussed for the 6 competing companies. Table1: All Information Gathered From Yahoo Finance on June 15 2020 Under Armour (24 years old) was cool once but Lululemon (22 years old) seems to have upstaged them quite nicely. It could be a cautionary tale of investing in “hyped” stocks. Getting back on track, I’m adding Fitbit because it was the new kid on the block just a few years ago and may not look as Fit anymore. Peloton also sells Apparel and Accessories. Scott Galloway calls this the Rundle model bundled services with a recurring revenue model. It is the Gillette model buy the shaving kit once and keep paying for the replacement blades. This is where Peloton gets recurring revenues when you subscribe to the classes on the app. In the case of Peloton, the first revenue stream is from the equipment itself which can set you back $2,245 and then the best bit is the app. They can therefore sell a lot more memberships than the space can cater to. Gyms make money when you pay for membership and then DON’T show up. It has a great revenue model that is counter-intuitive to traditional gyms.Īllow me to digress a little because this stuff is fascinating. Covid19 has certainly boosted Peloton as it gives you an in-home workout while making you feel like you are in a gym taking a group class. Moreover, Peloton and Soulcycle (not publicly traded) is disrupting the gym industry. I advise against penny stocks.) To some degree, it is nipping away at the market share of established companies like Nike in equipment and apparel. ( Be careful when you choose Peloton (PTON) as there is another company called Peloton Minerals Corporation (PMCCF) which looks like a Penny Stock. I chose Peloton, the new kid on the block that is cool and sexy. We will look at the following 6 companies operating in the fitness sector. What if we had $10,000 and wanted to invest in stocks in the fitness sector? Let us compare all the metrics we have learned from last week across this sector because we believe fitness is In and here to stay.Ĭomparing Stock Metrics Across the Same Sector In fact, Nike is the largest athletic apparel company in the world. Even though #Covid19 will change some businesses like gyms and wellness salons, others like home equipment, fitness tech and wearables, footwear and apparel could continue to grow. Global Fitness Industry revenue was $94 Billion in 2018 and expects to add 230 Million members by 2030, IHRSA reports. 
Sports Apparel Market Expected to Reach $248.1 Billion by 2026 : Allied Research reports that the industry is growing at a CAGR (Compound Annual Growth Rate) of 5.1%.I won’t bore you with too many details, but here are few reasons I chose this sector:
I chose the Fitness, Sports and Apparel sector. To compare apples to apples let us pick one sector. Keep abreast of the news that may impact the company and its operations.Read a Balance Sheet, Income Statement and Cashflow Statement.
COMPARE STOCKS TOGETHER HOW TO
However, you can try to mitigate the risk of picking the wrong stocks if you knew how to do the following: This will help us get closer to picking a stock to invest in. Today, I will show you how to compare different stocks across the same sector using the stock table. Last week, I wrote about the importance of understanding the terms in a stock table. Don’t Listen to Me, But Please Hear Me Out.
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