Planet Fitness (PLNT) closed at $81.87 in the latest trading session, marking a -1.53% move from the prior day. This move lagged the S&P 500’s daily loss of 1.3%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.45%.

Prior to today’s trading, shares of the fitness center operator had lost 12.26% over the past month. This has lagged the Consumer Discretionary sector’s loss of 10.95% and the S&P 500’s loss of 5.33% 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 $0.27 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.52 per share and revenue of $915.22 million. These totals would mark changes of +85.37% and +55.91%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Planet Fitness. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 11.92% lower. Planet Fitness is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Planet Fitness’s current valuation metrics, including its Forward P/E ratio of 54.63. Its industry sports an average Forward P/E of 25.12, 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 2.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. PLNT’s industry had an average PEG ratio of 2.73 as of yesterday’s close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% 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.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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