The stock of Planet Fitness has risen from a low point in 2020 at $23.76 to an all-time high earlier this year, hitting $109.75. The stock price has increased by more than 305% since its low point of 2020. It now has a market capitalization of $8.4 Billion. What’s next for PLNT shares ahead of the financial results due next week?
Planet Fitness is a successful business.
Planet Fitness, with over 2,637 Clubs and almost 20,000,000 users in the US, is the largest fitness company in the US.
After a difficult period caused by the COVID-19 epidemic, the company has seen a steady improvement in recent years.
The company’s revenue has increased from $363m in 2020 to $1bn in 2023. The company has become highly profitable after going from a loss of 15 million dollars in 2020 to an increase of $138 millions.
The business of Planet Fitness has performed well during a difficult time, as Americans are increasingly turning to drugs like Novo Nordisk or Eli Lilly for weight loss. This is an indication that customers combine weight loss medications with exercise.
Earnings for PLNT are expected to rise.
Earnings are likely to be released on Wednesday, and this will act as a catalyst in the stock price of Planet Fitness.
Analysts anticipate that PLNT will report a 13.85% increase in revenue for the fourth quarter, to $324.5 millions. The revenue increase will be $1.16 Billion, an 8.73% rise from the previous year.
Analysts expect Planet Fitness to increase its revenue by 9.58% this year, reaching $1.28 Billion. This trend is likely to continue into the future.
Profits at Planet Fitness are also predicted to continue growing. The company’s profit per share is expected to increase from 60 cents during the fourth quarter 2023, to 62 cents. Annual EPS is expected to increase from $2.24 up to $2.51. PLNT is known for consistently beating analyst estimates.
Planet Fitness’s high valuation is of concern, even though its profit continues to grow. The company has an forward P/E of 51,8, which is much higher than industry median 18. The P/E ratio of 39 is also much higher than the industry median PE ratio of 16. This valuation may be justified if the company continues to grow. The average PLNT target price is $111.7. This is slightly more than current stock prices of $96.89.
Read on: Analysts still love Planet Fitness stock (PLNT), despite the boycott risk
Stock price analysis of Planet Fitness
Weekly chart of the PLNT shares shows a significant comeback over the last few years. The chart formed an inversed head-and-shoulders pattern. This is a bullish continuation symbol.
The stock of Planet Fitness has shown a pattern that is a combination of a breakout and retest at $97. This was the largest swing since November 2021. The stock has moved over all moving averages. The stock is likely to rebound, and will retest resistance at $109.75. This would be a 13.45% increase over the current price.
This article Planet Fitness stock prediction: Is PLNT a good buy before earnings? This post may change as new information becomes available
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