Planet Fitness

Planet Fitness

PLNT

$ 100.02

$1.41 1.39% 4%

IBD Stock Analysis

• Finding support off 50-day/10-week lines
• Five-weeks-tight pattern could be flat base after this week, 102.90 buy point
• Relative strength line at 52-week high

Composite Rating

89/99

Industry Group Ranking

52/197

Emerging Pattern

Three Weeks Tight

Three Weeks Tight

After a breakout a stock will sometimes consolidate tightly. A three-weeks tight is when a stock closes within 1% to 1.5% of the prior week's close. A four-weeks-tight pattern also is possible Offers entry for existing holders to add shares.

* Not real-time data. All data shown was captured at 12:35PM EST on 01/13/2025.

Planet Fitness (PLNT) is the IBD Stock Of The Day, flexing relative strength and tight trading ahead of a potential breakout. Planet Fitness stock is also receiving key support after rapid growth fueled a rally to all-time highs.

On Monday, the "judgment free" gym operator reported 19.7 million members in 2024 — up from just 18 million in 2023. Same-club sales grew by 5%. Those gains came despite the first price increase for new members in more than 25 years.

The leisure company is set to report earnings on Feb. 25.

Planet Fitness Stock Performance

Shares dipped 1.4% to 100.02 in Monday's stock market action. Planet Fitness stock found support at the 50-day/10-week moving averages on Monday and has been trading around the 21-day exponential moving average for several weeks. That is a sign of strength in the current volatile market.

The PLNT stock chart shows tight action over the past several weeks after an earnings breakaway gap in November, according to MarketSurge pattern recognition. Aggressive investors could treat this as a flat base with a 102.90 buy point. It could turn into an official flat base after Friday.

The relative strength line for Planet Fitness stock is making a new high, a favorable sign ahead of a potential breakout. The RS line rallied in the past year but remains below pre-pandemic highs. A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the chart provided.

A 92 RS Rating means that this fitness stock has outperformed 92% of all stocks in IBD's database over the past year. In IBD's Leisure Services industry group, cruise stocks are acting well and several hold a higher RS score.

So does fitness equipment maker Peloton (PTON), with an RS of 98. Life Time Group Holdings (LTH), another athletic club operator, has a 90 RS Rating. Peloton stock is working on a new base after surging in late 2024 from record lows, but is just below its 50-day line. Life Time stock is just above its 50-day line within a base.

Bear in mind that last week's stock and bond sell-off shifted the stock market status. IBD advised investors be to reduce their exposure to 20%-40%.

Planet Fitness Earnings

The IBD Stock Checkup tool shows that Planet Fitness stock earns a Composite Rating of 89 out of 99. The rating rolls various fundamental and technical metrics into one easy-to-use score.

That is helped the RS Rating of 92 as well as an EPS Rating of 92, out of a best-possible 99.

Over the past three years, Planet Fitness grew earnings per share at an impressive 52% compound rate, recovering from a 2020 slump due to pandemic lockdowns. Over the past three quarters, the company averaged 16% earnings growth, slowing further to 8% in the latest quarter.

However, Planet Fitness raised its full-year earnings and revenue outlook in November and began a new $500 million share repurchase program.

Analysts now expect earnings growth to reach 12% in 2024 and 17% in 2025.

Top Pick For 2025

In December, analysts at RBC Capital named Planet Fitness stock a top pick for 2025.

The gym operator's price increases are below inflation and it is performing better than expected, RBC Capital analyst Logan Rech said.

The low-cost gym chain attracted customers with its high-value offerings. Fees as low as $15 per month (after the recent price hikes) open up access to a range of strength and cardio equipment. But changes to Planet Fitness club formats and layout are improving member experience and drawing a broader audience, Rech said.

As of Q3 2024, roughly a quarter (26%) of members had incomes under $50,000, an investor presentation shows. More than a third (35%) had incomes above $100,000.

Digital innovations are helping to drive growth, Planet Fitness says. Its initial claim to fame came from a nonintimidating approach to physical fitness.

Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.

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