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

Zacks Equity Research
·3 min read

In the latest trading session, Planet Fitness (PLNT) closed at $92.62, marking a -0.54% move from the previous day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the fitness center operator had gained 8.15% in the past month. In that same time, the Consumer Discretionary sector lost 2.13%, while the S&P 500 gained 0.12%.

Planet Fitness will be looking to display strength as it nears its next earnings release. On that day, Planet Fitness is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 41.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $173.94 million, up 30.03% 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Planet Fitness is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Planet Fitness is currently trading at a Forward P/E ratio of 57.31. This represents a premium compared to its industry's average Forward P/E of 38.22.

Investors should also note that PLNT has a PEG ratio of 2.87 right now. 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. PLNT's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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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