10 Best Fitness Stocks To Invest In

Published November 2, 2021 at 4:58 am EDT Updated August 19, 2026 at 5:37 am EDT

In this article, we discuss the 10 best fitness stocks to invest in.

The pandemic turned the fitness industry upside down last year. When the COVID-19 pandemic struck, approximately one-third of the world’s fitness clubs and studios were shut down by April 2020. According to a recent report by the global health and fitness association IHRSA, the US fitness industry alone lost $20.4 billion of revenue in 2020 as a result of temporary club closures and limited capacity enforced by local and state governments to limit the spread of COVID-19. Despite the setbacks, the gym and health club market is expected to grow by more than $100 billion over the next five years, according to Technavio’s market analysis.

With the consumers’ abrupt shift to virtual workouts, the interactive fitness market is expected to grow at a 7% CAGR from 2020 to 2024, reaching $4.81 billion, according to a market report by Technavio. Some of the leading players in the digital fitness market in 2021 include Peloton Interactive, Inc. (NASDAQ:PTON), NIKE, Inc. (NYSE:NKE), Lululemon Athletica Inc. (NASDAQ:LULU), and Apple Inc. (NASDAQ:AAPL).

10 Best Fitness Stocks To Invest In

Our Methodology

We identified the leading players in the fitness industry from interactive fitness players, nutrition, and fitness apparel. These are some of the most popular fitness stocks among the 873 hedge funds tracked by Insider Monkey. We ranked the list based on the number of hedge funds having stakes in each firm as of the second quarter.

We included only those fitness stocks that have positive analyst ratings and long-term growth catalysts.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Best Fitness Stocks To Invest In

10. Xponential Fitness, Inc. (NYSE:XPOF)

Number of Hedge Fund Holders: N/A

We’ll start our list of 10 best fitness stocks to invest in with boutique fitness franchisor Xponential Fitness, Inc. (NYSE:XPOF). The company has opened over 1,800 fitness studios in 48 states in the US and 11 countries in the world since its inception in 2017.

The California-based fitness company raised $120 million in its initial public offering (IPO) on July 23, 2021, with Xponential Fitness, Inc. opening at a price of $12 per share. Currently, the fitness stock sits at a market cap of $758 million.

In the second quarter of 2021, the company’s revenue grew 67% to $36 million, up from $21 million in the second quarter of 2020.

On September 22, Raymond James analyst Joseph Altobello double upgraded Xponential Fitness, Inc. to Strong Buy from Market Perform. Altobello likes the company’s valuation and believes that the fitness franchisor will have meaningful recovery in key metrics over the coming quarters with its leading position in the fitness market. The analyst set a price target of $14 for the stock.

9. The Hain Celestial Group, Inc. (NASDAQ:HAIN)

Number of Hedge Fund Holders: 26

The Hain Celestial Group, Inc. (NASDAQ:HAIN) is an international organic and natural products retailer with a store presence in more than 80 countries. The New York-based food manufacturer ranks ninth in our list of 10 best fitness stocks to invest in.

The healthy food retailer is known for weight management products under the brands of Health Valley, Celestial Seasonings, Terra Chips, The Greek God, and Yves. On September 29, Rob Dickerson of Jefferies maintained a Hold rating on The Hain Celestial Group, Inc. shares. Dickerson also increased his price target for the stock to $46 from $41 as he sees potential in the company’s plant-based food and drinks segment.

In addition, more hedge funds are long in The Hain Celestial Group, Inc. in the second quarter of 2021, with 26 hedge funds holding the food retailer stock, up from 23 in the first quarter. The stock gained 28% in the past twelve months.

8. WW International, Inc. (NASDAQ:WW)

Number of Hedge Fund Holders: 27

WW International, Inc. (NASDAQ:WW) is a digital weight management service provider and it ranks eighth in our list of the 10 best fitness stocks to invest in. The New York-based company offers personalized coaching and weight management resources through its app. As of the second quarter, WW International, Inc. had an end of period subscribers of 4.9 million where its subscription revenue totaled $272.9 million.

Additionally, the digital fitness company sells its consumer health products such as snacks and kitchen tools via its e-commerce platform. WW International, Inc. announced revenue of $38.5 million in its product sales in the second quarter. Wendy Nicholson of Citi maintained a Buy rating and a $32 price target on WW International, Inc. on September 30. According to the analyst, the digital fitness stock is well-positioned for a strong performance in 2022.

Miller Value Partners is the biggest stakeholder of the company as of the second quarter, with a $102 million stake. Overall, 27 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in the New York-based company at the end of June 2021.

7. V.F. Corporation (NYSE:VFC)

Number of Hedge Fund Holders: 32

V.F. Corporation (NYSE:VFC) owns a portfolio of outdoor, active, and work footwear and apparel but it is popularly known for its iconic brand Vans. According to data gathered by Sole Supplier, white slip-on Vans have seen a 7,800% increase in sales since the popular Korean series Squid Game premiered on Netflix. Shares of V.F. Corporation climbed 6.34% in September.

In the second quarter, the lifestyle apparel retailer increased its revenue in their active segment by 16% year over year to $1.39 billion, where Vans’ global sales increased by 8%. Among the company’s other active brands are Supreme, Kipling, Eastpak, and Jansport. Overall, V.F. Corporation had a revenue of $3.2 billion in the quarter, representing a 23% year-over-year growth.

On October 25, BTIG analyst Camilo Lyon kept a Buy rating on V.F. Corporation with a price target of $101 per share. Of the 873 elite funds tracked by Insider Monkey, 32 were long V.F. Corporation at the end of June, up from 31 in the first quarter of 2021. Ohio-based investment firm Diamond Hill Capital is the leading stakeholder of the company with 5.41 million shares worth $444 million.

6. DICK’S Sporting Goods, Inc. (NYSE:DKS)

Number of Hedge Fund Holders: 36

Retailer giant DICK’S Sporting Goods, Inc. has outperformed in the previous months, returning over 121% to investors, year to date. The sporting goods company has benefited from the pandemic as shoppers bought everything from outdoor equipment to gym clothes.

Meanwhile, income investors were ecstatic when the Pennsylvania-based sporting goods retailer increased its quarterly dividend by 20.7% to $0.4375 per share in August. DICK’S Sporting Goods, Inc., which ranks sixth on our list of the ten best fitness stocks to invest in, saw an increase in hedge fund stakes in the June quarter, with a total of 36 funds having a share in the company, up from 31 in the first quarter.

On September 9, Goldman Sachs analyst Kate McShane remained bullish on DICK’S Sporting Goods, Inc., maintaining her Buy rating on the athletic retailer stock noting continued upside in the company’s golf segment. McShane set a $127 price target for the stock.

5. Herbalife Nutrition Ltd. (NYSE:HLF)

Number of Hedge Fund Holders: 40

Herbalife Nutrition Ltd. (NYSE:HLF) saw a 15% increase in year-over-year revenue in the second quarter of 2021, recording $1.6 billion net sales and beating revenue estimates by $5.3 million. The California-based nutrition retailer’s energy, sports, and fitness category grew 45% year over year.

On September 24, Ivan Feinseth of Tigress Financial said that Herbalife Nutrition Ltd. is well-positioned to capitalize on global fitness and nutrition trends. Feinseth reiterated a Buy rating on Herbalife Nutrition Ltd. with a price target of $65.

At the end of the June quarter, 40 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Herbalife Nutrition Ltd., same in the preceding quarter worth $1.9 billion.

In the Q2 2021 Investor Letter of Appleseed Fund, the fund highlighted a few stocks and Herbalife Nutrition Ltd. is one of them. Here’s what the fund said:

“For long-term investors in Appleseed Fund, Herbalife should be a familiar name, as this will now be the third time that we have purchased Herbalife shares. We only hope that the third time will be as profitable for Appleseed Fund shareholders as the first two times. For those unfamiliar with the company, Herbalife is a global marketer of nutritional products to consumers worldwide. With just 20% of revenues attributable to the United States, the company markets its products through a multi-level distributor network. The business is currently growing at a double-digit annual rate and is generating gross margins of more than 75%, making Herbalife a quickly growing and we believe an attractive business. Herbalife’s business is “capital-light,” which means that the company does not require much in the way of capital investment to grow, allowing Herbalife to generate free cash flow that can mostly be returned to shareholders. Since 2013, Herbalife has used its free cash flow to buy back its stock, resulting in a share count that has declined by more than a third since 2013. Herbalife has a clean bill of health from a regulatory standpoint; its compliance function is the gold standard within the multi-level marketing industry.

At our purchase price, Herbalife shares were trading at the same share price as 2018. The company is firing on almost all cylinders right now, but its shares are undervalued for two reasons. First, the company’s China business has been struggling. We are not so worried about Herbalife’s China business because China represents only 5.5% of company revenues. Moreover, we believe the setbacks are temporary, and management has put a plan in place to reinvigorate revenue growth in China. Second, investors are worried that the company’s growth rate will be harmed as the economy opens up again. We conservatively assume that the company’s long-term growth rate will be 5% per annum, which is quite a bit lower than the 19% growth rate that Herbalife posted in Q1 2021. However, even assuming a 5% growth rate, Herbalife shares are significantly undervalued. Herbalife was trading at less than 10x earnings per share when we bought the stock, which represented an outstanding bargain, in our view.”

4. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 46

In the second quarter of 2021, the company grew its revenue by 61% year over year to $1.5 billion while the gross margin increased 390 basis points to 58.1%.

Even in the midst of a pandemic, the athleisure company is one of the fastest-growing in the fitness market. Lululemon Athletica Inc. opened 11 new company-operated stores in the second quarter, bringing the total number of stores worldwide to 534.

Lululemon Athletica Inc. is also expanding its business by acquiring Mirror, a fitness on-demand platform based in New York.

The winning Vancouver-based apparel stock gained more attention from the elite hedge funds in the second quarter. Of the 873 elite funds tracked by Insider Monkey, 46 were long Lululemon Athletica Inc. at the end of June, up from 41 in the first quarter of 2021. Boston-based investment firm Arrowstreet Capital is the leading stakeholder of the company, owning 410,700 shares worth $149 million.

Oppenheimer analyst Brian Nagel maintained an Outperform rating on Lululemon Athletica Inc. on September 17. (NASDAQ:LULU).

3. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 67

Leading interactive fitness company Peloton Interactive, Inc. ranks third on the list of 10 best fitness stocks to invest in. The New York-based cardio equipment manufacturer does not only get its revenue from selling stationary bikes, treadmills, and fitness apparel. In fact, the majority of Peloton Interactive’s (NASDAQ:PTON) revenue comes from its subscription-based interactive tool required to fully operate its connected fitness equipment.

In fiscal 2021, Peloton Interactive, Inc. had a total of 2.33 million subscriptions, up from 1.09 million in the previous year. The interactive fitness company’s revenue in fiscal 2021 grew by more than 120% to $4.02 billion. On October 11, Edward Yruma of Keybanc kept an Overweight rating on Peloton Interactive, Inc. with a price target of $155.

At the end of the June quarter, 67 hedge funds in the database of Insider Monkey held stakes worth $6.12 billion in Peloton Interactive, Inc., up from 64 in the first quarter worth $3.96 billion.

2. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 67

NIKE, Inc. stock rose 27% last year after the company shifted its focus to online sales during the pandemic. In the recent earnings announced in September, the company’s digital sales grew 29% to $4.7 billion. The company’s overall revenue in the first quarter of fiscal 2022 was up 16% year over year to $12.2 billion.

NIKE, Inc. also serves as a good passive income tool for investors as the company pays its shareholders an annual dividend of $1.10 per share. The company has increased its dividends in the last 11 years. NIKE, Inc. ranks second on our list of 10 best fitness stocks to invest in.

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 138

Mega-cap tech giant Apple Inc. tops our list of the 10 best fitness stocks to invest in. According to data gathered by Counterpoint Research, the $2 trillion-dollar company has a decent share of the fitness tracker market, surpassing the 100-million mark for the Apple Watch user base in the June quarter. In its third-quarter report, Apple Inc. shared its revenue from the wearables, home, and accessories segment which totaled $8.8 billion, up from $6.5 billion in Q3 2020.

In addition, Apple Inc. debuted Apple Fitness+, a connected fitness program that brings studio-style workouts to the iPhone, iPad, and Apple TV in December 2020. The stock gained 28% in the past twelve months.

On October 27, Morgan Stanley kept an Overweight rating on Apple Inc. with a price target of $166 per share.

You can also take a peek at the 10 High Beta Dividend Stocks to Buy and 10 Stocks To Invest In According To Game Creek Capital.

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