Planet Fitness (PLNT) Outpaces Stock Market Gains: What You Should Know

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Planet Fitness (PLNT) Outpaces Stock Market Gains: What You Should Know


Planet Fitness (PLNT) closed the most recent trading day at $80.92, moving +1.11% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.57%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.17%.

Coming into today, shares of the fitness center operator had lost 5.5% in the past month. In that same time, the Consumer Discretionary sector lost 16.66%, while the S&P 500 lost 10.81%.

Planet Fitness will be looking to display strength as it nears its next earnings release, which is expected to be May 10, 2022. In that report, analysts expect Planet Fitness to post earnings of $0.27 per share. This would mark year-over-year growth of 170%. Meanwhile, our latest consensus estimate is calling for revenue of $187.99 million, up 68.03% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.52 per share and revenue of $915.66 million. These totals would mark changes of +85.37% and +55.98%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Planet Fitness. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Planet Fitness is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Planet Fitness has a Forward P/E ratio of 52.58 right now. Its industry sports an average Forward P/E of 19.47, so we one might conclude that Planet Fitness is trading at a premium comparatively.

We can also see that PLNT currently has a PEG ratio of 2.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 2.63 at yesterday’s closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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