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

    In the last trading session, Planet Fitness (PLNT) closed at $85.12, recording a move of 1.18% over the previous day. The move outpaced the S&P 500’s 0.51% daily gain. Meanwhile, Dow Jones added 0.44%, and tech-heavy Nasdaq 0.1%.

    Before today’s trading, shares of the fitness center operator have lost 5.74% over the past month. This lagged the consumer discretionary sector’s loss of 1.01% and the S&P 500’s gain of 5.51% in that time.

    Investors are hoping to gain traction from Planet Fitness as it nears its next earnings release. The company is expected to report earnings per share of $0.27, up 170% from the previous quarter. Our latest consensus estimate calls for quarterly revenue of $187.38 million, an increase of 67.49% over the same period last year.

    For the full year, our Zacks Consensus estimates expect 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 reviews tend to reflect the latest near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.

    Based on our research, we believe that these discretionary reviews are directly related to stock movements close to the team. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.

    Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has an impressive externally audited track record of outperforming, with the #1 stocks delivering a +25% average annual return since 1988. Within during The past 30 days, our consolidated EPS forecast is down 11.92%. Planet Fitness has a Zacks Ranking of 3rd (Hold) at the moment.

    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 have to mention that PLNT has a PEG ratio of 2.76. The price-earnings-growth (PEG) ratio is similar to the widely used price-to-earnings (P/E) ratio, but this metric also takes into account a company’s expected earnings growth rate. Leisure and leisure services stocks have, on average, a PEG ratio of 2.76 based on yesterday’s closing prices.

    The leisure and entertainment services industry is part of the discretionary consumer goods sector. This group has a Zacks Industry Rating of 151, placing it in the bottom 41% of all 250+ industries.

    Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

    Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.

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    Planet Fitness, Inc. (PLNT): Free Stock Analysis Report

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