PLNT franchises and operates fitness clubs around the world. It is one of the largest and fastest growing fitness companies in terms of membership and locations. PLNT’s low-cost monthly memberships drive growth. As of September 30, Planet Fitness operated 2,637 gyms, which is significantly more than the 1,899 five years ago. The company’s long-term goal is 5,000 facilities.
In terms of financials, Planet Fitness reported 4.3% same-store sales growth in the third quarter. Total revenue rose to $292.2 million from $277.6 million a year ago (a gain of 5.3%). PLNT’s earnings per share were $0.50, reflecting earnings per share of $0.46. The company opened 21 new locations and has a cash position of $530.7 million, positioning it for more growth.
It’s no wonder PLNT stock is up 36% this year – and it could rise even more. MAPsignals data shows how Big Money investors are betting heavily on the stock’s future outlook.
Institutional figures reveal a lot. Lately, PLNT has enjoyed strong investor demand, which we believe is institutional support.
Any green bar indicates unusually high volumes in PLNT shares. They reflect our own inflow signal, driving stocks higher:
There are a lot of discretionary names being collected right now. But there is a powerful fundamental story happening with Planet Fitness.
Institutional backing and a sound fundamental background make this company worth investigating. As you can see, PLNT has seen strong revenue and profit growth:
Source: FactSet
Moreover, earnings per share are expected to increase by +16.9% this year.
Now it makes sense why the stock has soared to new highs. PLNT has a track record of strong financial performance.
Combining great fundamentals with our proprietary software has created some big winning stocks over the long term.
Planet Fitness is a top-rated stock at MAPsignals. That means the stock is experiencing unusual buying pressure and growing fundamentals. We have a ranking process that shows these types of stocks on a weekly basis.
It has made the rare Top 20 report several times over the past seven years. The blue bars below show when PLNT was a top pick… with shares rising over time:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outliers exhibit… the best of the best. The demand for big money drives stocks higher.
The PLNT rally is not new at all. Big Money buying the stock is a signal to pay attention. Given its historical gains and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
