Shopify and Peloton: Stocks Poised to Double in Five Years

Investors are looking at Shopify and Peloton as stocks with strong growth potential. Shopify's revenue growth is impressive at 31%, while Peloton is reducing costs and stabilizing its revenue, hinting at promising returns for investors in the coming years.

Date: 18-02-2025

AI Rating: 7

Shopify (NYSE: SHOP) demonstrates a strong potential for growth, with a notable revenue growth rate of 31% in the latest quarter. The company is positioned as a leader in e-commerce, empowering merchants with essential tools to thrive online. Not only did Shopify achieve an annual revenue growth of 26%, but its forward-looking metrics indicate significant prospects for the future. Analysts project an earnings-per-share (EPS) growth of 35% yearly, bolstered by an increase in free cash flow (FCF) margin from 13% to 18%. This growth trajectory positions Shopify favorably for investors aiming for a substantial return on their investment.

Peloton Interactive (NASDAQ: PTON), while having experienced ups and downs, is also showing signs of recovery. After reaching high revenues during the pandemic at $4.1 billion in 2021, Peloton has managed to stabilize its revenue around $2.6 billion. The company is actively working on reducing costs, which could yield over $200 million in savings by the end of the current fiscal year. The stock currently trades at a P/FCF ratio of 23, which is deemed reasonable against its guidance for $200 million in FCF, indicating a solid valuation. Peloton's efforts to return to profitable growth could positively impact its stock price, making it a potential candidate for doubling in the upcoming years.

Stocks: SHOP PTON