Peloton Interactive (NASDAQ:PTON) have significantly outperformed the market over the last year, but both fitness brands also have huge long-term potential.
The athletic apparel industry has been one of the best places to invest in recent years, given the rise of athleisure and the investments leading brands have made in improving supply chains, e-commerce operations, and product innovation.
Some of the demand for athletic apparel has spilled over to growth in the interactive fitness market, where Peloton is playing the role of disruptor by bringing the gym to your home and offering live workouts through a potentially lucrative subscription model.
UPS (NYSE:UPS) and multi-industry industrial
3M (NYSE:MMM) are in a hurry. Both are enacting significant changes to their businesses with the aim of improving performance. As such, their stocks represent excellent buying opportunities for value-oriented investors. Here s why.
UPS
Surging e-commerce volumes, particularly in business to consumer (B2C) deliveries to residential deliveries bring about opportunities, but also challenges, for UPS. In common with
FedEx (NYSE:FDX), UPS has enjoyed strong e-commerce-related volume growth in recent years. That s undoubtedly a positive, but it also has some negatives as well:
UPS and FedEx have seen margin challenges due to surging B2C deliveries as, among other issues, inefficiently packaged and bulky deliveries are costly to deliver to residential addresses.
I think there s a good case for arguing that food equipment company
Middleby (NASDAQ:MIDD), paint and coatings company
Axalta Coating Systems (NYSE:AXTA), and package delivery giant
UPS (NYSE:UPS) are three companies set to do very well. Here s why.
Middleby and dining out
The food and food equipment sector has been one of the hardest to read in 2020. On the one hand, stay-at-home measures have boosted spending on the home and on ordering food or buying at grocery stores great news for Middleby s residential kitchen equipment and food processing equipment sales. On the other hand, restaurants and hotels have been particularly hard hit by the pandemic, and Middleby s commercial foodservice sales have fallen significantly.