Why Are Life Time (LTH) Shares Soaring Today
What Happened:
Shares of premium fitness club Life Time (NYSE:LTH) jumped 26.5% in the pre-market session after the company reported fourth-quarter results that blew past analysts' EPS and adjusted EBITDA expectations. Revenue also came in slightly ahead of expectations, driven by a strong growth in membership. Looking ahead, sales outlook for the next quarter and the full year came in higher than Wall Street's estimates. Overall, this was a strong quarter that should satisfy shareholders.
Is now the time to buy Life Time? Access our full analysis report here, it's free.
What is the market telling us:
Life Time's shares are very volatile and over the last year have had 22 moves greater than 5%. But moves this big are very rare even for Life Time and that is indicating to us that this news had a significant impact on the market's perception of the business.
Life Time is down 4.9% since the beginning of the year, and at $13.89 per share it is trading 37.2% below its 52-week high of $22.12 from July 2023. Investors who bought $1,000 worth of Life Time's shares at the IPO in October 2021 would now be looking at an investment worth $783.10.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
