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The post-COVID world is different. There’s no question of that. Entire swaths of the economy were shut down. Just now, the world is beginning to open back up. That does not mean you should blindly buy the dip on stocks that were beat down during the shutdown. It is very tempting to just load the boat on all things retail, hotel, and travel related. Unfortunately, like most things stock market related, it’s not that simple. However, by taking a look at earnings estimates, revisions from analysts, and the Zacks Rank, you can save yourself some headache.
Today’s Bear of the Day is a company which bottomed out with COVID and is not starting to tick up. But the earnings estimates have not followed suit. I’m talking about Planet Fitness (PLNT - Free Report) ). Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. It operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States. As of December 31, 2020, the company had 2,124 stores, including 2,021 franchised and 103 corporate-owned stores.
Even though this stock is officially a “Bear of the Day,” that does not mean I’m bearish over the long-term on this stock. In fact, there are some monster growth numbers here. Year-over-year revenue growth is forecast to come in at 31.24% this year and 39.13% next year. Then why name it a Bear of the Day? I am here to point out something deep in the numbers that long-term investors should be made aware of. Taking a look at earnings estimates for the current year and next year, there has been a significant hit to consensus estimates. Over the last 30 days, 8 analysts have cut their estimates for the current year and next year. The bearish moves have dropped our Zacks Consensus Estimates from $1.10 for the current year to 97 cents. Next year’s number is off from $1.88 to $1.77. Perhaps the recovery isn’t going as good as some optimistic investors believe.
The Leisure and Recreation Services industry ranks in the Bottom 36% of our Zacks Industry Rank. There are still several stocks in the good graces of our Zacks Rank within the industry. Those stocks include Zacks Rank #1 (Strong Buy) RCI Hospitality (RICK - Free Report) and Zacks Rank #2 WW International (WW - Free Report) .
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Bear of the Day: Planet Fitness (PLNT)
The post-COVID world is different. There’s no question of that. Entire swaths of the economy were shut down. Just now, the world is beginning to open back up. That does not mean you should blindly buy the dip on stocks that were beat down during the shutdown. It is very tempting to just load the boat on all things retail, hotel, and travel related. Unfortunately, like most things stock market related, it’s not that simple. However, by taking a look at earnings estimates, revisions from analysts, and the Zacks Rank, you can save yourself some headache.
Today’s Bear of the Day is a company which bottomed out with COVID and is not starting to tick up. But the earnings estimates have not followed suit. I’m talking about Planet Fitness (PLNT - Free Report) ). Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. It operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States. As of December 31, 2020, the company had 2,124 stores, including 2,021 franchised and 103 corporate-owned stores.
Planet Fitness, Inc. Price and Consensus
Planet Fitness, Inc. price-consensus-chart | Planet Fitness, Inc. Quote
Even though this stock is officially a “Bear of the Day,” that does not mean I’m bearish over the long-term on this stock. In fact, there are some monster growth numbers here. Year-over-year revenue growth is forecast to come in at 31.24% this year and 39.13% next year. Then why name it a Bear of the Day? I am here to point out something deep in the numbers that long-term investors should be made aware of. Taking a look at earnings estimates for the current year and next year, there has been a significant hit to consensus estimates. Over the last 30 days, 8 analysts have cut their estimates for the current year and next year. The bearish moves have dropped our Zacks Consensus Estimates from $1.10 for the current year to 97 cents. Next year’s number is off from $1.88 to $1.77. Perhaps the recovery isn’t going as good as some optimistic investors believe.
The Leisure and Recreation Services industry ranks in the Bottom 36% of our Zacks Industry Rank. There are still several stocks in the good graces of our Zacks Rank within the industry. Those stocks include Zacks Rank #1 (Strong Buy) RCI Hospitality (RICK - Free Report) and Zacks Rank #2 WW International (WW - Free Report) .
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>