"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
PLANET FITNESS (NYSE:PLNT) shows strong technicals and a high-quality setup, making it a breakout candidate. The stock scores a perfect 10 in technical health and a 9 in setup quality.
Congress may be weeks away from allowing HSAs to be used for fitness-related products and services; here are three fitness stocks positioned for growth
Planet Fitness (PLNT) shows strong technical breakout potential with top ratings for momentum and setup quality, backed by solid support and institutional interest.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Fitness stocks witnessed a sharp sell-off this week, after a provision that would allow Americans to use pre-tax dollars from Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) to pay for gym memberships and fitness equipment was excluded from the Senate's budget reconciliation bill.
Shares of Peloton fell despite Bank of America maintaining a Buy rating and $9.50 price target, with the firm noting “plenty of catalysts not priced into shares.”
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure facilities industry, including Planet Fitness (NYSE:PLNT) and its peers.
Inclusive gym franchise company (NYSE:PLNT) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 11.5% year on year to $276.7 million. Its non-GAAP EPS of $0.59 per share was 4.1% below analysts’ consensus estimates.
Inclusive gym franchise company (NYSE:PLNT) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 11.5% year on year to $276.7 million. Its non-GAAP profit of $0.59 per share was 4.1% below analysts’ consensus estimates.
U.S. stocks traded mixed at midday Wednesday, as investors remained cautious ahead of the Federal Reserve’s upcoming policy decision, with Chair Jerome Powell set to speak at 2:30 p.m. ET.
Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match.
The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
While the broader market has struggled with the S&P 500 down 6.9% since October 2024, Planet Fitness has surged ahead as its stock price has climbed by 17.2% to $97.01 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
