Planet Fitness is in a great spot at the moment, both regarding its stock price and the business. Planet Fitness has gained over 40% in stock value in the past 6 months. On the other hand, the industry declined by 0.4%.
This stock gain is happening because of positive investor sentiment due to an overall great job that Planet Fitness is doing with their strategic partnerships, international expansions, robust earnings trend and same-store sales. One thing to note though, high debt is still a concern.
Planet Fitness has impressed investors over the trailing 4 quarters, where it topped the estimates. The results beat the Zacks Consensus Estimate with an average of 8.9%.
With that being said, Planet Fitness' valuation looks a bit stretched, and investors should be careful in the medium-term.
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