After getting body slammed during the heart of the pandemic, fitness outfit Planet Fitness is shaping up. On Wednesday, Planet Fitness stock's Relative Strength (RS) Rating climbed to 77, up from 65 a day earlier.
The new 77 RS Rating means the Hampton, N.H.-based company topped 77% of other stocks for price performance this past year. It's a good but not yet great number. The market's biggest winners typically have an RS Rating north of 80 as they launch their largest runs. See if Planet Fitness stock can continue to rebound and clear that threshold.
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Planet Fitness Stock Rises On 'Everybody' Theme
Planet Fitness launched its IPO in 2015 and grew rapidly by offering low membership fees and positioning itself as the gym for everyday people, not jocks and fitness nuts.
The so-so RS Rating is the result of weak sales and earning in the early part of the pandemic. Lately people have been returning to gyms and the fitness company is benefiting from the trend. Earnings have grown 53% to more than 1,000% over the past four quarters. During that time, revenue growth ranged from 37% to 67%. In its latest quarter EPS rose 81% to 38 cents on a 64% surge in revenue to $224.4 million.
Among its other key ratings, Planet Fitness has a 77 EPS Rating, a 64 Composite Rating and bullishly, a B- Accumulation/Distribution Rating. The B- rating, on an A+ to E scale, shows that big money investors like ETFs and mutual funds are fairly heavy buyers of its stock.
Planet Fitness stock climbed 0.8% Wednesday to 76.82. It was up 3.4% in late trading. It rose from a June 16 low of 61.11 to 82.96 on Aug. 8 then consolidated. While it's not currently an ideal time to jump in, see if the stock is able to establish a fresh pattern like a cup-with-handle base or a three weeks tight and enter a buying range in heavy volume.
Planet Fitness holds the No. 6 rank among its peers in the Leisure-Services industry group. Marriott Vacations World and Endeavor Group are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
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