Big Money Pumping Up Planet Fitness

PLNT franchises and operates fitness clubs around the world. It is one of the largest and fastest-growing fitness companies in terms of its number of members and locations. PLNT’s low-cost monthly memberships are driving growth – as of Sept. 30, Planet Fitness operated 2,637 gyms, which is up significantly from 1,899 five years ago. The company’s long-term goal is 5,000 facilities.

As for its financials, Planet Fitness reported 4.3% same-store sales growth in the third quarter. Total revenue jumped from $277.6 million a year ago to $292.2 million (a 5.3% gain). PLNT’s per-share earnings were $0.50, which reflected EPS growth of $0.46. The company opened 21 new locations and holds a $530.7 million cash position, making it primed for more growth.

It’s no wonder PLNT shares are up 36% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Planet Fitness Working Out for Big Money

Institutional volumes reveal plenty. Recently, PLNT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PLNT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with Planet Fitness.

Planet Fitness Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PLNT has had strong sales and earnings growth:

• 3-year sales growth rate (+39.4%)
• 3-year earnings growth rate (+84%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +16.9%.

Now it makes sense why the stock has been powering to new heights. PLNT has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Planet Fitness has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last seven years. The blue bars below show when PLNT was a top pick…with shares rising over time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Planet Fitness Price Prediction

The PLNT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in PLNT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.