StocksRankings — AI Stock Picks & Rankings

PLNT Stock Analysis — Planet Fitness

Sector: Consumer Services

AI Verdict

PLNT trades at 13.4x next year's earnings while analysts expect 19.1% EPS growth, making it cheap for the growth you're getting if its sticky, high-volume gym model keeps delivering.

Competitive Moat

Planet Fitness operates a franchise-based gym model focused on affordable memberships and a 'Judgement Free Zone' brand, which attracts first-time and casual gym-goers. Its nationwide scale and sticky membership base create cost advantages and recurring revenue stability that smaller chains struggle to match.

Summary

PLNT stands out for its low-cost, high-volume gym model that keeps membership churn low and margins steady.

Where It Stands

PLNT has delivered 12.1% revenue growth year-over-year and trades at 13.4x next year's earnings, a discount to the consumer staples sector median of 20x.

Key Metrics

Analyst Consensus

23 Buy · 3 Hold · 0 Sell (26 analysts)

Bull Case

With forward EPS expected to grow 19.1% and a forward P/E of just 13.4x, the stock is cheap for the growth on offer.

Bear Case

If the P/E reverts to 12x (the energy sector median), the stock could see a 10% valuation drop even if earnings meet expectations.

Catalyst to Watch

Watch for upcoming quarterly membership growth numbers — a slowdown could challenge the current growth narrative.

Explore More Stock Analysis

Stock Rankings & Screeners