Planet Fitness stock hits 52-week high at $92.02 amid robust growth By Investing.com

Planet Fitness Inc . (NYSE:) has reached a new 52-week high, with its stock price soaring to $92.02, underscoring the company’s strong performance in the fitness sector. This milestone reflects a significant uptrend in the company’s market valuation, marking a 37.53% increase over the past year. Investors have shown increased confidence in Planet Fitness’s business model and growth strategy, which have been pivotal in driving the stock’s impressive climb to its current peak. The company’s focus on affordable and accessible gym memberships appears to be resonating well with consumers, propelling the stock to new heights.

In other recent news, Planet Fitness, Inc. reported third-quarter results that exceeded expectations. The fitness center operator announced adjusted earnings per share of $0.64, surpassing analyst estimates of $0.57. Revenue for the quarter was $292.2 million, beating the consensus forecast of $283.79 million, a 5.3% increase year over year.

Planet Fitness also reported system-wide same club sales growth of 4.3% for the third quarter, with the addition of 21 new clubs, bringing its total to 2,637 locations. CEO Colleen Keating noted solid results, including over 5% revenue growth and around 3% net income growth.

In light of recent developments, the company raised its full-year 2024 guidance, now expecting revenue growth of 8-9%, up from its previous forecast of 4-6%. It also increased its outlook for system-wide same club sales growth to 4-5%, from 3-5% previously. Furthermore, Planet Fitness completed a $280 million accelerated share repurchase program and initiated a new $500 million share repurchase authorization.

InvestingPro Insights

Planet Fitness’s recent achievement of a new 52-week high is further supported by InvestingPro data, which shows the stock trading at 99.49% of its 52-week high. This aligns with the article’s focus on the company’s strong market performance. The fitness giant’s impressive growth is also reflected in its 36.49% price total return over the past six months.

InvestingPro Tips highlight Planet Fitness’s “impressive gross profit margins,” which is evident in the company’s gross profit margin of 59.89% for the last twelve months as of Q2 2024. This robust profitability metric underscores the effectiveness of Planet Fitness’s affordable gym membership model mentioned in the article.

Additionally, another InvestingPro Tip notes that Planet Fitness is “trading at a high earnings multiple,” with a P/E ratio of 46.35. This high valuation suggests that investors have strong expectations for future growth, aligning with the article’s observation of increased investor confidence in the company’s business model and growth strategy.

For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Planet Fitness, providing deeper insights into the company’s financial health and market position.

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