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Peloton Interactive Inc (Nasdaq: PTON) has had a difficult time adjusting to the post-pandemic world – but it looks like things are finally starting to change for the better.

Shares of the connected fitness company have more than doubled over the past two months as financials improved on the back of its turnaround efforts.

Following such a surge, however, it makes sense to wonder if there is any upside left in Peloton stock. Let’s find out.

Return to sales growth could help Peloton’s stock

Peloton has already pushed its sales back into the growth trajectory.

In August, the exercise equipment company reported a 0.2% year-on-year growth in revenue for its fourth quarter – a marginal increase but an increase nonetheless.

Meanwhile, PTON has announced plans to cut its marketing costs by 19%.

Additionally, the Nasdaq-listed firm has lowered its global headcount by 15% and continues to trim its retail showroom footprint as well in pursuit of lowering its annual run-rate expenses by over $200 million by the end of fiscal 2025.

As evident, Peloton Interactive has found some religion in terms of cost structure – and moving further in that direction could help it command a higher price tag moving forward.

That’s why BMO analysts continue to rate Peloton stock at “market perform”.

Their $6.50 price target indicates potential for another 15% gain from here.

Still, PTON is not a suitable pick for income investors as it doesn’t pay a dividend at writing.

Peloton Interactive is fully committed to profitability

Investors should feel somewhat better about Peloton Interactive as its management has finally slammed the breaks on chasing growth at any cost and has committed to orchestrating a return to profitability first.

Other recent developments that make PTON a bit more attractive include the launch of a gear rental service in the United Kingdom and the recent refinancing of the balance sheet.

Lastly, despite the recent surge, Peloton stock remains priced for a disaster.

All in all, this New York-headquartered firm is a turnaround story that still adds a lot of risk to your portfolio, should you choose to invest in it.

On the other hand, though, it is now moving in the right direction and may offer lucrative long-term returns under the right management.

So, while we wouldn’t recommend going big when it comes to investing in Peloton shares due to their speculative nature, it may not be the worst decision to build a small position in Peloton stock at the current price if you do have the appropriate risk appetite.

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