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Planet Fitness Up 11% in Three Months: Should You Buy, Sell or Hold?
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Key Takeaways
Planet Fitness stock climbed 10.5% in three months, outperforming industry and market benchmarks.
PLNT benefits from new club openings, rising membership, and strategic marketing initiatives.
Planet Fitness plans to open 160 to 170 new clubs in 2025.
Shares of Planet Fitness, Inc. (PLNT - Free Report) have gained 10.5% over the past three months against the 2.7% decline in the Zacks Leisure and Recreation Services industry. The stock has also surpassed the broader Consumer Discretionary sector's rise of 1.4% and the S&P 500 index’s 1% growth during the same period.
This leading franchisor and operator of fitness centers in the United States is benefiting from its four key strategic efforts. The company is focusing on strengthening brand positioning through marketing, enhancing member experience, refining products and formats, and accelerating new club openings.
Notably, PLNT stock has also outperformed some of the other industry players in the past three months, namely, OneSpaWorld Holdings Limited (OSW - Free Report) , Peloton Interactive (PTON - Free Report) and Xponential Fitness, Inc. (XPOF - Free Report) . During the said time frame, OneSpaWorld and Peloton have gained 1.5% and 1%, respectively, while Xponential Fitness has tumbled 34.9%.
PLNT Stock’s Past Three Months’ Price Performance
Image Source: Zacks Investment Research
Let us take a closer look at the factors driving Planet Fitness’ recent growth and what this may signal for the stock going forward.
Enhancing Market Presence Through Marketing
The company emphasizes strengthening its brand presence and membership offerings. In the first quarter of 2025, membership reached approximately 20.6 million, reflecting an increase of about 900,000 from the end of 2024. Promotional strategies used in 2024, such as limited-time offers and Black Card incentives, continued to support membership growth.
The company started the year with a new marketing campaign. The campaign highlights a balanced mix of equipment, a welcoming environment and a supportive community within the clubs. Research showed this campaign improved brand perception across all fitness levels and increased interest among former members. The company also noted a strong rejoin rate above 30% during the quarter.
Going forward, the company plans to enhance its data-driven approach to brand development. Several testing projects are underway, including pricing adjustments and changes in club layouts.
Elevating Member Experience & Product Enhancements
Planet Fitness focuses on improving the fitness experience by adapting to changing customer needs. The company aims to provide a judgment-free environment with quality equipment that supports different fitness levels and goals. The company expanded its strength equipment and increased space for functional training.
Based on the research conducted in the first quarter, the company found that most respondents believe Planet Fitness offers the right equipment to build strength and support members’ fitness journeys. The company had updated the equipment mix in nearly 1,800 clubs as of the end of the first quarter. It plans to complete the rollout across all locations by the year-end.
Driving Expansion Through Club Openings
Planet Fitness continues to grow its footprint by adding new clubs in various markets. The company is exploring smaller store formats to enter suburban and less populated areas. This strategy helps the company expand its reach and supports steady growth in both domestic and international markets.
In the first quarter of 2025, the company recorded a 6.1% rise in system-wide same-club sales, mainly supported by new member growth and club openings. It added 19 new clubs during the period, including 16 franchisee-owned and 3 corporate-owned locations. As of March 31, 2025, the company operated 2,741 system-wide clubs and expects to open 160-170 new locations during the year. With favorable market trends and strong momentum, the company remains confident in meeting this target.
Estimate Trend Favors Planet Fitness
Image Source: Zacks Investment Research
Earnings estimates for 2025 have inched up in the past 30 days by 0.3%, indicating improving sentiments among analysts. Besides, the year-over-year expected growth rate for 2025 earnings currently stands at 12.4%, with a 9.9% increase projected for the second quarter.
PLNT Stock Trades at a Premium
From a valuation standpoint, the company is currently trading at a premium compared with its industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The premium valuation indicates that the stock is trading above industry peers, making it difficult for investors to figure out a suitable entry point.
Image Source: Zacks Investment Research
However, the overvaluation of PLNT stock compared with industry peers indicates a strong potential in the market, given the favorable trends backing it up. The other players, including Xponential Fitness and OneSpaWorld, are currently trading at 10.83X and 18.47X, respectively, on a forward 12-month P/E ratio basis, while Peloton has a P/E ratio of negative 34.05X.
Headwinds to PLNT’s Prospects
PLNT is facing pressures in the form of elevated costs and expenses, given the lingering inflationary scenario and ongoing global macroeconomic risks. The company is also navigating uncertainties tied to recently imposed tariffs. Weaker consumer sentiment and a modest decline in discretionary spending have added to the challenges.
Conclusion
Planet Fitness continues to face near-term pressures due to inflation, higher operating expenses and cautious consumer spending. The company is also addressing risks from newly imposed tariffs. However, with strong vendor relationships and scale, the company has managed to limit much of the impact. It is working with manufacturers, exploring new production sources and speeding up equipment imports to reduce exposure.
On the positive side, the company is seeing steady membership growth and improved brand engagement. Club enhancements and targeted marketing are supporting member retention and rejoin rates.
Existing stakeholders are advised to hold their positions in this Zacks Rank #3 (Hold) stock, while prospective investors should monitor how the company manages these challenges before investing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Planet Fitness Up 11% in Three Months: Should You Buy, Sell or Hold?
Key Takeaways
Shares of Planet Fitness, Inc. (PLNT - Free Report) have gained 10.5% over the past three months against the 2.7% decline in the Zacks Leisure and Recreation Services industry. The stock has also surpassed the broader Consumer Discretionary sector's rise of 1.4% and the S&P 500 index’s 1% growth during the same period.
This leading franchisor and operator of fitness centers in the United States is benefiting from its four key strategic efforts. The company is focusing on strengthening brand positioning through marketing, enhancing member experience, refining products and formats, and accelerating new club openings.
Notably, PLNT stock has also outperformed some of the other industry players in the past three months, namely, OneSpaWorld Holdings Limited (OSW - Free Report) , Peloton Interactive (PTON - Free Report) and Xponential Fitness, Inc. (XPOF - Free Report) . During the said time frame, OneSpaWorld and Peloton have gained 1.5% and 1%, respectively, while Xponential Fitness has tumbled 34.9%.
PLNT Stock’s Past Three Months’ Price Performance
Image Source: Zacks Investment Research
Let us take a closer look at the factors driving Planet Fitness’ recent growth and what this may signal for the stock going forward.
Enhancing Market Presence Through Marketing
The company emphasizes strengthening its brand presence and membership offerings. In the first quarter of 2025, membership reached approximately 20.6 million, reflecting an increase of about 900,000 from the end of 2024. Promotional strategies used in 2024, such as limited-time offers and Black Card incentives, continued to support membership growth.
The company started the year with a new marketing campaign. The campaign highlights a balanced mix of equipment, a welcoming environment and a supportive community within the clubs. Research showed this campaign improved brand perception across all fitness levels and increased interest among former members. The company also noted a strong rejoin rate above 30% during the quarter.
Going forward, the company plans to enhance its data-driven approach to brand development. Several testing projects are underway, including pricing adjustments and changes in club layouts.
Elevating Member Experience & Product Enhancements
Planet Fitness focuses on improving the fitness experience by adapting to changing customer needs. The company aims to provide a judgment-free environment with quality equipment that supports different fitness levels and goals. The company expanded its strength equipment and increased space for functional training.
Based on the research conducted in the first quarter, the company found that most respondents believe Planet Fitness offers the right equipment to build strength and support members’ fitness journeys. The company had updated the equipment mix in nearly 1,800 clubs as of the end of the first quarter. It plans to complete the rollout across all locations by the year-end.
Driving Expansion Through Club Openings
Planet Fitness continues to grow its footprint by adding new clubs in various markets. The company is exploring smaller store formats to enter suburban and less populated areas. This strategy helps the company expand its reach and supports steady growth in both domestic and international markets.
In the first quarter of 2025, the company recorded a 6.1% rise in system-wide same-club sales, mainly supported by new member growth and club openings. It added 19 new clubs during the period, including 16 franchisee-owned and 3 corporate-owned locations. As of March 31, 2025, the company operated 2,741 system-wide clubs and expects to open 160-170 new locations during the year. With favorable market trends and strong momentum, the company remains confident in meeting this target.
Estimate Trend Favors Planet Fitness
Image Source: Zacks Investment Research
Earnings estimates for 2025 have inched up in the past 30 days by 0.3%, indicating improving sentiments among analysts. Besides, the year-over-year expected growth rate for 2025 earnings currently stands at 12.4%, with a 9.9% increase projected for the second quarter.
PLNT Stock Trades at a Premium
From a valuation standpoint, the company is currently trading at a premium compared with its industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The premium valuation indicates that the stock is trading above industry peers, making it difficult for investors to figure out a suitable entry point.
Image Source: Zacks Investment Research
However, the overvaluation of PLNT stock compared with industry peers indicates a strong potential in the market, given the favorable trends backing it up. The other players, including Xponential Fitness and OneSpaWorld, are currently trading at 10.83X and 18.47X, respectively, on a forward 12-month P/E ratio basis, while Peloton has a P/E ratio of negative 34.05X.
Headwinds to PLNT’s Prospects
PLNT is facing pressures in the form of elevated costs and expenses, given the lingering inflationary scenario and ongoing global macroeconomic risks. The company is also navigating uncertainties tied to recently imposed tariffs. Weaker consumer sentiment and a modest decline in discretionary spending have added to the challenges.
Conclusion
Planet Fitness continues to face near-term pressures due to inflation, higher operating expenses and cautious consumer spending. The company is also addressing risks from newly imposed tariffs. However, with strong vendor relationships and scale, the company has managed to limit much of the impact. It is working with manufacturers, exploring new production sources and speeding up equipment imports to reduce exposure.
On the positive side, the company is seeing steady membership growth and improved brand engagement. Club enhancements and targeted marketing are supporting member retention and rejoin rates.
Existing stakeholders are advised to hold their positions in this Zacks Rank #3 (Hold) stock, while prospective investors should monitor how the company manages these challenges before investing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.