#7 - Planet Fitness (NYSE:PLNT)
Finally, investors looking to profit from the weight loss craze can look at Planet Fitness Inc. (NYSE: PLNT). The company is one of the last brands standing after the Covid-19 pandemic ravaged the industry.
One of the purported benefits of weight loss drugs is the ability to lose weight without exercise. Still, whether individuals choose to use weight loss drugs or not, exercise is still a key component to a healthy lifestyle.
What has helped save Planet Fitness is its business model which includes affordable monthly fees as low as $10. The beginning of a new year is a time when many individuals take up a new fitness habit. Not surprisingly, the company’s fourth quarter is usually its largest in terms of revenue.
At 33x forward earnings, it’s fair to wonder if PLNT stock is overvalued. This may be more of a trade than an investment. But if you’re looking to get your trading year off to a good start, PLNT stock may be worth a close look.
About Planet Fitness
Planet Fitness, Inc, together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia.
Read More - Current Price
- $100.87
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $96.13 (4.7% Downside)
Investing can sometimes be as easy as riding the trend. The weight loss craze is not going to subside anytime soon. There's simply too much money to be made. And pharmaceutical companies are not going to leave the playing field for the existing players. In the next couple of years, there will be several more companies attempting to bring weight loss treatments to market.
That being said, many industries have been created in an effort to help individuals lose weight. The Peloton craze of 2019 became an outright mania in 2020. Lululemon has created an entire industry around the concept of athleisure.
Neither of those companies are on this list. But both companies show that there are many stocks in addition to the seven on this list that offer a way to play this trend.
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