In the latest trading session, Planet Fitness (PLNT) closed at $93.72, marking a +0.39% move from the previous day. This move lagged the S&P 500’s daily gain of 1.45%. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%.
Heading into today, shares of the fitness center operator had gained 0.26% over the past month, outpacing the Consumer Discretionary sector’s loss of 5.48% and the S&P 500’s loss of 3.26% in that time.
Wall Street will be looking for positivity from Planet Fitness as it approaches its next earnings report date. The company is expected to report EPS of $0.26, up 52.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $179.61 million, up 34.27% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Planet Fitness. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 5.29% higher. Planet Fitness is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Planet Fitness is currently trading at a Forward P/E ratio of 54.56. Its industry sports an average Forward P/E of 33.6, 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. The Leisure and Recreation Services was holding an average PEG ratio of 2.02 at yesterday’s closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.