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  • (0:30) - Wellness Industry in 2018
  • (4:30) - Weight Watchers: Oprah and DJ Khalid
  • (10:00) - Nutrisystem and The SouthBeach Diet
  • (14:15) - The Whole 30 Diet
  • (18:10) - Yoga Works As A Public Company
  • (21:20) - Planet Fitness Franchises Fast Growth
  • (23:30) - MINDBODY: Application Software For Gyms
  • (28:15) - Episode Roundup: Podcast@Zacks.com

 

Welcome to Episode #114 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Maddy Johnson, a Zacks Editor and co-host of the Friday Finish Line podcast, to discuss how you can get your portfolio in shape, and maybe yourself as well, by investing in companies at the forefront of the wellness craze that is gaining in strength.

Usually, the biggest New Year’s Resolution most people make is to either lose weight or “get healthy.” That usually involves a diet or change to an eating regiment.

Recently, US News and World Report released a list of the top diets which has the Internet abuzz.

Tracey and Maddy have certainly tried some on the list.

But who are the companies that are winning in wellness?

5 Companies Leading in the Wellness Trend

1.      Weight Watchers (WTW - Free Report) had a fantastic year last year as revenue and earnings skyrocketed. At the end of the third quarter, it had grown its subscribers to 3.4 million and had raised full year guidance again. It recently announced it had signed music producer DJ Khaled on as social media ambassador. Shares are no longer cheap as they trade with a forward P/E of 31.

2.      Nutrisystem has always been about sending customers the prepared food. This year, it is heavily marketing the South Beach Diet, which it acquired in 2015. Earnings are expected to rise 63% in 2017 and another 17% in 2018. It trades with a forward P/E of 22.

3.      YogaWorks went IPO in 2017 so it’s a new entrant in the wellness space. It operates over 60 yoga studios nationwide and offers nearly 1000 online yoga classes. It also offers Pilates at some of its California locations. The company isn’t yet profitable. It’s expected to lose $1.08 in 2017.

4.      Planet Fitness, Inc. (PLNT - Free Report) bills itself as America’s fastest growing fitness company. It aims for the lower end of the market with its $10 a month subscription fee. It must be doing something right, however, as earnings are expected to rise 18.8% in 2017 and another 22.3% in 2018. It’s no longer cheap, however, as it trades with a forward P/E of 33.4.

5.      MINDBODY, Inc. is a software company that offers a wellness software and payment platform to entrepreneurs in the wellness industry, including spas, instructors and fitness clubs. Its app allows customers to book classes, even at the last minute, on their phones. Full year revenue is expected to rise 31% but the company is forecast to lose $0.01 in 2017. However, 2018 is looking up as the Zacks Consensus is calling for $0.20 a share.

Other companies are also trying to tap into the wellness craze by partnering with established brands.

For example, Blue Apron (APRN) is offering some Whole30 compliant foods this January. In addition, Whole Foods (AMZN) also sells many Whole30 compliant products, some of which have the Whole30 seal on them.

What does Tracey think about investing in some of these companies?

Find out the answer to this question, and more, on this week’s podcast.

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