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

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Planet Fitness (PLNT - Free Report) closed at $92.04 in the latest trading session, marking a +1.61% move from the prior day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.

Prior to today's trading, shares of the fitness center operator had gained 12.38% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1% and the S&P 500's gain of 4.56% in that time.

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 $0.17 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $173.94 million, up 30.03% from the year-ago period.

Any recent changes to analyst estimates for Planet Fitness should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Planet Fitness is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Planet Fitness is currently trading at a Forward P/E ratio of 114.37. Its industry sports an average Forward P/E of 26.74, so we one might conclude that Planet Fitness is trading at a premium comparatively.

It is also worth noting that PLNT currently has a PEG ratio of 5.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 3.51 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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