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

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2024
Planet Fitness (PLNT) Outpaces Stock Market Gains: What You Should Know


In the latest trading session, Planet Fitness (PLNT) closed at $85.12, marking a +1.18% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.

Prior to today’s trading, shares of the fitness center operator had lost 5.74% over the past month. This has lagged the Consumer Discretionary sector’s loss of 1.01% and the S&P 500’s gain of 5.51% in that time.

Investors will be hoping for strength from Planet Fitness as it approaches its next earnings release. The company is expected to report EPS of $0.27, up 170% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $187.38 million, up 67.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.52 per share and revenue of $915.22 million, which would represent changes of +85.37% and +55.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Planet Fitness. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.92% lower. Planet Fitness is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Planet Fitness is currently trading at a Forward P/E ratio of 55.28. For comparison, its industry has an average Forward P/E of 26.53, which means Planet Fitness is trading at a premium to the group.

Also, we should mention that PLNT has a PEG ratio of 2.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 2.76 based on yesterday’s closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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