Why Planet Fitness (PLNT) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights Planet Fitness (PLNT) as a compelling momentum stock, noting its B rating in Momentum Style Score and an 8.3% share price increase over the past four weeks. The company holds a Zacks Rank of #3 (Hold) with a VGM Score of B, and analysts have revised fiscal year 2025 earnings estimates upwards to $2.90 per share, reflecting a 6.9% average earnings surprise; investors are advised to consider PLNT given its positive momentum indicators.

Analysis

Planet Fitness (PLNT) is designated with a Zacks Rank #3 (Hold), complemented by a VGM Score of B and a Momentum Style Score of B, indicating favorable momentum characteristics. This is supported by an 8.3% appreciation in its share price over the preceding four weeks. For fiscal 2025, while two analysts have issued upward revisions to their earnings estimates for PLNT within the last 60 days, the Zacks Consensus Estimate has remained stable at $2.90 per share. The company has a track record of exceeding earnings expectations, with an average earnings surprise of 6.9%. As of December 31, 2024, Planet Fitness reported approximately 19.7 million members and 2,722 clubs, with around 90% of its stores operating under a franchise model. The general sentiment surrounding the stock is positive, with a specific positive sentiment score of 0.4 noted for PLNT.

Key Decisions for Investors

• Investors should acknowledge PLNT's positive momentum, highlighted by its B-rated Momentum Style Score and an 8.3% share price increase over the past four weeks, alongside its consistent 6.9% average earnings surprise.
• The Zacks Rank #3 (Hold) alongside a stable fiscal 2025 consensus EPS estimate of $2.90, despite upward revisions from two analysts, suggests a need for careful monitoring of broader analyst sentiment and future earnings announcements before making significant investment decisions.
• Consider PLNT's current profile as potentially suitable for investors seeking exposure to momentum within the consumer discretionary sector, while remaining aware that the 'Hold' rating implies limited near-term upside according to the Zacks model unless further positive catalysts emerge.