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

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In the latest trading session, Planet Fitness (PLNT - Free Report) closed at $86.43, marking a -0.18% move from the previous day. This move lagged the S&P 500's daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.18%.

Coming into today, shares of the fitness center operator had lost 6.76% in the past month. In that same time, the Consumer Discretionary sector lost 5.02%, while the S&P 500 gained 0.88%.

Wall Street will be looking for positivity from Planet Fitness as it approaches its next earnings report date. In that report, analysts expect Planet Fitness to post earnings of $0.27 per share. This would mark year-over-year growth of 170%. Meanwhile, our latest consensus estimate is calling for revenue of $187.38 million, up 67.49% from the prior-year quarter.

PLNT's full-year Zacks Consensus Estimates are calling for earnings of $1.52 per share and revenue of $915.22 million. These results would represent year-over-year changes of +85.37% and +55.91%, respectively.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 11.92% lower. Planet Fitness is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Planet Fitness is holding a Forward P/E ratio of 56.89. This valuation marks a premium compared to its industry's average Forward P/E of 27.11.

Also, we should mention that PLNT has a PEG ratio of 2.84. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 2.84 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 153, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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