Planet Fitness (PLNT) Stock Up 30% in 6 Months: More Upside Left?
Planet Fitness, Inc. PLNT is benefiting from a rise in membership count, promotional offers and digital initiatives. This and the emphasis on international expansions bode well.
Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
The above-mentioned tailwinds backed the company in achieving impressive fourth-quarter 2022 results. Earnings and revenues surpassed the Zacks Consensus Estimate by 12.8% and 4.5%, respectively.
Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
The contributions from the corporate-owned store segment surpassed the franchisee segment in the said year, adding to the growth of PLNT. Also, the Black Card price increase has aided growth, as the company is taking initiatives to drive membership.
Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
Shares of PLNT have gained 29.7% over the past six months compared with the Zacks Leisure and Recreation Services industry’s growth of 8.2%. The earnings estimate for 2023 has shown improvement in the past 30 days, portraying the possible prospects for the company.
Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
Zacks Investment Research
Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
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Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
Let us discuss the driving factors of PLNT.
Planet Fitness (PLNT) Stock Up 30% In 6 Months: More Upside Left?
Growth Drivers
Planet Fitness continues to focus on its marketing muscle to drive growth. The company has transitioned from 16 marketing agencies to one (Publicis Groupe) to fuel incremental member growth. The agency will look after the company’s creative and media placement for its annual New Year’s sale. Consistent with the advertising strategy (covering national and local levels), the transition paves the path for lower media costs and solid member acquisition.
During the fourth quarter of 2022, the company reported solid membership conversions on the back of its marketing and promotional offers. Also, it stated to have outpaced 2019 levels. During the quarter, membership levels came in at 16.6 million compared with 16.5 million in the previous quarter. Going forward, the company expects regularized joining trends and seasonality to continue.
Planet Fitness also intends to engage its existing members via its mobile app by focusing on driving downloads, app usage and enhanced functionality such as referral incentives, in-app messaging, notifications and enhanced account management tools. In 2022, the company relaunched its PF mobile…
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