Here's Why Planet Fitness (PLNT) is a Strong Momentum Stock

Planet Fitness (PLNT) is identified as a strong momentum stock by Zacks, with a Momentum Style Score of A and a VGM Score of B. Shares are up 3.5% over the past four weeks, and the consensus earnings estimate for fiscal 2025 has increased to $2.91 per share following upward revisions by three analysts in the last 60 days; PLNT also has a history of positive earnings surprises averaging 6.9%.

Analysis

Planet Fitness (PLNT) is identified as a stock with strong momentum attributes, evidenced by a Zacks Momentum Style Score of 'A' and a respectable VGM Score of 'B'. This is supported by a 3.5% increase in its share price over the past four weeks. Analyst outlook for PLNT is showing positive revisions; three analysts have raised their earnings estimates for fiscal 2025 within the last 60 days, contributing to a $0.01 lift in the Zacks Consensus Estimate to $2.91 per share. The company also demonstrates a consistent ability to outperform expectations, boasting an average earnings surprise of 6.9%. As of March 31, 2025, Planet Fitness reported approximately 20.6 million members and 2,741 clubs, with around 90% of its locations being franchise-owned. Despite these positive momentum indicators and earnings trends, PLNT currently holds a Zacks Rank of #3 (Hold), suggesting that while near-term momentum is favorable, other factors may be moderating its overall investment rating according to the Zacks methodology, which prioritizes earnings estimate revisions for its primary Rank.

Key Decisions for Investors

• Given PLNT's 'A' Momentum Style Score and recent 3.5% share price increase, investors focused on momentum strategies may find the stock noteworthy, but should balance this with its current Zacks #3 (Hold) overall rating.
• The upward trend in fiscal 2025 earnings estimates, marked by three recent analyst upgrades and a consensus of $2.91 per share, alongside a consistent 6.9% average earnings surprise, warrants monitoring for sustained fundamental strength.
• Investors should observe for any potential upgrades to the Zacks Rank, as a shift to a #1 (Strong Buy) or #2 (Buy) in conjunction with the existing strong Style Scores would significantly enhance the bullish signal based on the Zacks framework.