Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
Planet Fitness (PLNT)
Planet Fitness, headquartered in Hampton, NH, was formed in 1992. It is one of the leading franchisors and operators of fitness centers in the United States. As of Jun 30, 2023, the company had more than 18.4 million members and 2,472 stores in all 50 states of the United States, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia. As of Dec 31, 2022, about 98% of all franchise stores were owned and operated by a franchisee group.
PLNT sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is up 14% and up 20.3% over the past one-week and four-week period, respectively, and Planet Fitness has lost 10.3% in the last one-year period as well. Additionally, an average of 1,942,805.75 shares were traded over the last 20 trading sessions.
A company's earnings performance is important for momentum investors as well. For fiscal 2023, three analysts revised their earnings estimate higher in the last 60 days for PLNT, while the Zacks Consensus Estimate has increased $0 to $2.18 per share. PLNT also boasts an average earnings surprise of 7.4%.
PLNT should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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