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

In the latest trading session, Planet Fitness (PLNT) closed at $83.85, marking a +0.95% move from the previous day. This change outpaced the S&P 500's 1.89% loss on the day. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the fitness center operator had lost 8.7% in the past month. In that same time, the Consumer Discretionary sector lost 3.32%, while the S&P 500 lost 1.79%.

Investors will be hoping for strength from Planet Fitness as it approaches its next earnings release. In that report, analysts expect Planet Fitness to post earnings of $0.26 per share. This would mark 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.29% higher. 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 48.54 right now. This represents a premium compared to its industry's average Forward P/E of 36.17.

Also, we should mention that PLNT has a PEG ratio of 2.43. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 99, 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.

To follow PLNT in the coming trading sessions, be sure to utilize Zacks.com.

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