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4 Exercise-at-Home Stocks to Benefit Amid Surging Coronavirus Infections
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The coronavirus outbreak has brought about changes in everything we do, including some major lifestyle changes. As the pandemic spread, the work-from-home trend and other mandates confined everyone indoors, leading to the emergence of a sedentary lifestyle.
The lockdown scenario, prevalent for most of 2020, has affected the health of everyone as people were not able to hit the gym or go to the parks for a walk or a run. The lockdown caused a rise in health lifestyle conditions like diabetes, obesity and cardiovascular disease. Consequently, fitness has become more of a concern and even those, who did not work out at all, will now feel the need to start.
Among the many changes amid the pandemic, the need to stay fit and healthy to safeguard self from any infection has taken prominence. Awareness of the need for regular exercise, which can strengthen lungs, immune and digestive systems, and improve your mood, boost circulation and heart health, has led to the rise of the exercise-at-home trend.
Home Fitness Trend on the Rise
Home fitness, which has been part of our lives for decades, has taken a new role since the onset of the pandemic as gyms, swimming and yoga centers have been closed for the past several months. To catch up on their fitness regime amid the lockdowns, people took to yoga, aerobics and workout tutorials on Zoom and various sites to find ways to stay fit within the four walls. Even as gyms and yoga rooms start reopening, people are now more comfortable sweating out at home to avoid the risks of working out in groups.
As people are exercising by themselves, there has been a rise in demand for fitness accessories and gears, including clothes, shoes, yoga mats, dumbbells and other gym gears. Moreover, sales of home fitness equipment like exercise bikes, weights, personal fitness trackers and other gear to stay fit have seen a surge.
Further, the virtual fitness industry is witnessing a boom with live interactive virtual workouts gaining popularity amid the crisis. Personal fitness trainers are catching up with this trend by offering e-fitness courses. Moreover, local gyms are re-working their business models, as gym chains tie-up with fitness apps and wearable devices.
Consequently, sportswear, fitness wearables and other related e-commerce companies are boosting their offerings to grab a share of the rise in the home fitness trend. Online sale of fitness equipment has increased significantly since the lockdown and continues to rise as e-commerce companies like Amazon (AMZN - Free Report) continue to add assortments.
Innovations in activewear, shoes, digital devices, and even online streaming and fitness apps to suit the requirements of customers are taking prominence. Investors may, therefore, keep a close watch on some stocks, which are poised to grow on their sturdy offerings to encourage exercising at home.
4 Stocks to Gain From Exercise-At-Home Trend
The athletic apparel and footwear giant, NIKE, Inc. (NKE - Free Report) is capitalizing on the growing exercise-at-home trend. The company is gaining from the increased digital demand for goods due to the shift in consumer shopping preference. Even as stores reopen, it continues to witness strong digital trends. This indicates the strength of its brands and investments made to improve consumers’ digital shopping experiences.
Moreover, it is poised to benefit from improved customer engagement on its fitness app as customers are becoming health conscious and including fitness routines in their lifestyle. The company is witnessing higher subscriptions on the Nike Training Club (“NTC”) app through the roll-out of customer engagement workout sessions and programs. The NTC app has more than 185 free on-demand workouts by Nike’s Master Trainers. The app features a range of workouts to fit any routine, with options from beginner to advanced, low-to-high intensity, and durations from 15 minutes to 90 minutes. It also has numerous programs, including yoga, mobility, strength training and cardio.
The Zacks Rank #3 (Hold) company’s shares have gained 44% in the past year. The Zacks Consensus Estimate for its fiscal 2022 sales and earnings indicates a rise of 11.1% and 28.7%, respectively, from the year-ago period’s reported levels.
Fitbit, Inc. , a leading provider of wearable fitness trackers, is another beneficiary of the at-home fitness trend. Being one of the first to market these devices, the company has been able to build a knowledge base about users’ fitness habits and the demand for health monitoring devices.
The momentum across smartwatch devices and trackers continues, which remains a tailwind. This along with a concerted brand-building effort, innovative products and improved distribution has led to an increasingly loyal customer base. The expanding smartwatch portfolio, which is helping the company in gaining traction among customers, remains a major catalyst. New advanced features and increased brand awareness are added positives.
Fitbit has entered an agreement to be acquired by Google for $7.35 per share in cash. The deal will likely help Fitbit accelerate innovation in the wearables category. The Zacks Rank #3 company’s shares have increased 11.6% in the past year. The Zacks Consensus Estimate for its 2021 sales and earnings indicates a rise of 6.7% and 15.7%, respectively, from the year-ago period’s reported levels.
Peloton Interactive, Inc. (PTON - Free Report) is an interactive fitness product provider in North America and internationally, offering technology-based fitness products and subscription-based streaming classes. The company is popular for its on-demand live classes and PTON Digital app for connected access. Its prescription services have gained traction amid the pandemic, with 1.4 million subscribers, driven by offerings like bringing the gym to your home and live workouts through a potentially lucrative subscription model.
Additionally, the company is likely to gain from the recently announced deal to acquire Precor, one of the world's largest suppliers of commercial fitness equipment. Peloton expects connected fitness subscribers and revenues to double in fiscal 2021, reaching 2.17 million and $3.9 billion, respectively.
The Zacks Rank #3 company’s shares have gained 394.2% in the past year. The Zacks Consensus Estimate for its fiscal 2022 sales and earnings indicates a rise of 31.3% and 75.8%, respectively, from the year-ago period’s reported levels.
Vancouver, Canada-based lululemon athletica inc. (LULU - Free Report) is a yoga-inspired athletic apparel company that creates lifestyle components. The company is witnessing strong momentum in digital sales due to the pandemic-led shift in consumer preference. Its business is gaining from the accelerated expansion of e-commerce and digital sweat offerings.
The company’s products, crafted with technical innovation and performance fabrics, are likely to continue aiding results due to the rise in work-from-home trend and versatile lifestyle, owing to the pandemic. It expects to capture the growing online demand and ensure a robust shopping experience through its accelerated e-commerce investments this year. lululemon has been investing in developing sites, building transactional omni functionality and increasing fulfillment capabilities.
Management expects the recent MIRROR buyout to improve its at-home fitness offerings. MIRROR is on track to generate $150 million in revenues in fiscal 2020. Moreover, this business is likely to grow and provide a recurring revenue stream for lululemon through subscriptions.
The Zacks Rank #3 company’s shares have gained 63.6% in the past year. The Zacks Consensus Estimate for its fiscal 2021 sales and earnings indicates a rise of 23.5% and 44.2%, respectively, from the year-ago period’s reported levels.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
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4 Exercise-at-Home Stocks to Benefit Amid Surging Coronavirus Infections
The coronavirus outbreak has brought about changes in everything we do, including some major lifestyle changes. As the pandemic spread, the work-from-home trend and other mandates confined everyone indoors, leading to the emergence of a sedentary lifestyle.
The lockdown scenario, prevalent for most of 2020, has affected the health of everyone as people were not able to hit the gym or go to the parks for a walk or a run. The lockdown caused a rise in health lifestyle conditions like diabetes, obesity and cardiovascular disease. Consequently, fitness has become more of a concern and even those, who did not work out at all, will now feel the need to start.
Among the many changes amid the pandemic, the need to stay fit and healthy to safeguard self from any infection has taken prominence. Awareness of the need for regular exercise, which can strengthen lungs, immune and digestive systems, and improve your mood, boost circulation and heart health, has led to the rise of the exercise-at-home trend.
Home Fitness Trend on the Rise
Home fitness, which has been part of our lives for decades, has taken a new role since the onset of the pandemic as gyms, swimming and yoga centers have been closed for the past several months. To catch up on their fitness regime amid the lockdowns, people took to yoga, aerobics and workout tutorials on Zoom and various sites to find ways to stay fit within the four walls. Even as gyms and yoga rooms start reopening, people are now more comfortable sweating out at home to avoid the risks of working out in groups.
As people are exercising by themselves, there has been a rise in demand for fitness accessories and gears, including clothes, shoes, yoga mats, dumbbells and other gym gears. Moreover, sales of home fitness equipment like exercise bikes, weights, personal fitness trackers and other gear to stay fit have seen a surge.
Further, the virtual fitness industry is witnessing a boom with live interactive virtual workouts gaining popularity amid the crisis. Personal fitness trainers are catching up with this trend by offering e-fitness courses. Moreover, local gyms are re-working their business models, as gym chains tie-up with fitness apps and wearable devices.
Consequently, sportswear, fitness wearables and other related e-commerce companies are boosting their offerings to grab a share of the rise in the home fitness trend. Online sale of fitness equipment has increased significantly since the lockdown and continues to rise as e-commerce companies like Amazon (AMZN - Free Report) continue to add assortments.
Innovations in activewear, shoes, digital devices, and even online streaming and fitness apps to suit the requirements of customers are taking prominence. Investors may, therefore, keep a close watch on some stocks, which are poised to grow on their sturdy offerings to encourage exercising at home.
4 Stocks to Gain From Exercise-At-Home Trend
The athletic apparel and footwear giant, NIKE, Inc. (NKE - Free Report) is capitalizing on the growing exercise-at-home trend. The company is gaining from the increased digital demand for goods due to the shift in consumer shopping preference. Even as stores reopen, it continues to witness strong digital trends. This indicates the strength of its brands and investments made to improve consumers’ digital shopping experiences.
Moreover, it is poised to benefit from improved customer engagement on its fitness app as customers are becoming health conscious and including fitness routines in their lifestyle. The company is witnessing higher subscriptions on the Nike Training Club (“NTC”) app through the roll-out of customer engagement workout sessions and programs. The NTC app has more than 185 free on-demand workouts by Nike’s Master Trainers. The app features a range of workouts to fit any routine, with options from beginner to advanced, low-to-high intensity, and durations from 15 minutes to 90 minutes. It also has numerous programs, including yoga, mobility, strength training and cardio.
The Zacks Rank #3 (Hold) company’s shares have gained 44% in the past year. The Zacks Consensus Estimate for its fiscal 2022 sales and earnings indicates a rise of 11.1% and 28.7%, respectively, from the year-ago period’s reported levels.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fitbit, Inc. , a leading provider of wearable fitness trackers, is another beneficiary of the at-home fitness trend. Being one of the first to market these devices, the company has been able to build a knowledge base about users’ fitness habits and the demand for health monitoring devices.
The momentum across smartwatch devices and trackers continues, which remains a tailwind. This along with a concerted brand-building effort, innovative products and improved distribution has led to an increasingly loyal customer base. The expanding smartwatch portfolio, which is helping the company in gaining traction among customers, remains a major catalyst. New advanced features and increased brand awareness are added positives.
Fitbit has entered an agreement to be acquired by Google for $7.35 per share in cash. The deal will likely help Fitbit accelerate innovation in the wearables category. The Zacks Rank #3 company’s shares have increased 11.6% in the past year. The Zacks Consensus Estimate for its 2021 sales and earnings indicates a rise of 6.7% and 15.7%, respectively, from the year-ago period’s reported levels.
Peloton Interactive, Inc. (PTON - Free Report) is an interactive fitness product provider in North America and internationally, offering technology-based fitness products and subscription-based streaming classes. The company is popular for its on-demand live classes and PTON Digital app for connected access. Its prescription services have gained traction amid the pandemic, with 1.4 million subscribers, driven by offerings like bringing the gym to your home and live workouts through a potentially lucrative subscription model.
Additionally, the company is likely to gain from the recently announced deal to acquire Precor, one of the world's largest suppliers of commercial fitness equipment. Peloton expects connected fitness subscribers and revenues to double in fiscal 2021, reaching 2.17 million and $3.9 billion, respectively.
The Zacks Rank #3 company’s shares have gained 394.2% in the past year. The Zacks Consensus Estimate for its fiscal 2022 sales and earnings indicates a rise of 31.3% and 75.8%, respectively, from the year-ago period’s reported levels.
Vancouver, Canada-based lululemon athletica inc. (LULU - Free Report) is a yoga-inspired athletic apparel company that creates lifestyle components. The company is witnessing strong momentum in digital sales due to the pandemic-led shift in consumer preference. Its business is gaining from the accelerated expansion of e-commerce and digital sweat offerings.
The company’s products, crafted with technical innovation and performance fabrics, are likely to continue aiding results due to the rise in work-from-home trend and versatile lifestyle, owing to the pandemic. It expects to capture the growing online demand and ensure a robust shopping experience through its accelerated e-commerce investments this year. lululemon has been investing in developing sites, building transactional omni functionality and increasing fulfillment capabilities.
Management expects the recent MIRROR buyout to improve its at-home fitness offerings. MIRROR is on track to generate $150 million in revenues in fiscal 2020. Moreover, this business is likely to grow and provide a recurring revenue stream for lululemon through subscriptions.
The Zacks Rank #3 company’s shares have gained 63.6% in the past year. The Zacks Consensus Estimate for its fiscal 2021 sales and earnings indicates a rise of 23.5% and 44.2%, respectively, from the year-ago period’s reported levels.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>