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Planet Fitness (PLNT) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3-min read

In the latest trading session, Planet Fitness (PLNT) closed at $83.06, marking a +0.85% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the fitness center operator had lost 7.78% in the past month. In that same time, the Consumer Discretionary sector lost 3.57%, while the S&P 500 lost 1.81%.

Investors will be hoping for strength from Planet Fitness as it approaches its next earnings release. On that day, Planet Fitness is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 52.94%. Our most recent consensus estimate is calling for quarterly revenue of $179.61 million, up 34.27% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Planet Fitness. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.29% higher within the past month. Planet Fitness currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Planet Fitness currently has a Forward P/E ratio of 48.14. This valuation marks a premium compared to its industry's average Forward P/E of 36.7.

It is also worth noting that PLNT currently has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PLNT's industry had an average PEG ratio of 1.86 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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