Planet Fitness (PLNT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Planet Fitness (PLNT) closed at $81.18, marking a -0.72% move from the previous day. This move lagged the S&P 500's daily gain of 0.43%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.2%.
Coming into today, shares of the fitness center operator had gained 1.65% in the past month. In that same time, the Consumer Discretionary sector lost 0.22%, while the S&P 500 gained 3.69%.
Investors will be hoping for strength from Planet Fitness as it approaches its next earnings release. The company is expected to report EPS of $0.27, up 170% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $187.99 million, up 68.03% from the year-ago period.
PLNT's full-year Zacks Consensus Estimates are calling for earnings of $1.52 per share and revenue of $915.66 million. These results would represent year-over-year changes of +85.37% and +55.98%, respectively.
Investors should also note any recent changes to analyst estimates for Planet Fitness. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Planet Fitness is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Planet Fitness's current valuation metrics, including its Forward P/E ratio of 53.72. This represents a premium compared to its industry's average Forward P/E of 23.55.
It is also worth noting that PLNT currently has a PEG ratio of 2.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 2.69 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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