5 Best Leisure Stocks To Buy Now

4. Planet Fitness, Inc. (NYSE:PLNT)

Number of Hedge Fund Holders: 39

Planet Fitness, Inc. (NYSE:PLNT) is a New Hampshire-based company that franchises and operates fitness centers under the Planet Fitness brand. The company operates through Franchise, Corporate-Owned Stores, and Equipment segments. Planet Fitness, Inc. (NYSE:PLNT) franchises are available in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. 

On November 8, Planet Fitness, Inc. (NYSE:PLNT) reported a Q3 non-GAAP EPS of $0.42 and a revenue of $244.39 million, outperforming Wall Street consensus by $0.04 and $9.82 million, respectively. Revenue over the period climbed 58.4% on a year-over-year basis. 

Raymond James analyst Joseph Altobello on November 16 raised the price target on Planet Fitness, Inc. (NYSE:PLNT) to $92 from $84 and kept a Strong Buy rating on the shares. The analyst had higher confidence in both Planet Fitness, Inc. (NYSE:PLNT)’s ability to execute on its business model and its competitive positioning, and told investors that the company introduced “ambitious yet achievable” three-year financial targets, including low-to-mid teens revenue growth.

According to Insider Monkey’s Q3 data, 39 hedge funds were long Planet Fitness, Inc. (NYSE:PLNT), compared to 28 funds in the prior quarter. Karthik Sarma’s SRS Investment Management is the leading position holder in the company, with approximately 7 million shares worth $401 million. 

Here is what Wasatch Global Investors has to say about Planet Fitness, Inc. (NYSE:PLNT) in its Q1 2021 investor letter:

“At the other end of the spectrum, we completely sold our position in Planet Fitness, Inc. (PLNT) even though some speculators would consider the stock to be a reopening play. The company owns and operates a chain of fitness clubs. The stock spiked on optimism that people will return to pre-pandemic levels of exercise at group facilities. But recent earnings for Planet Fitness didn’t impress us, and we decided the stock was too expensive based on our projection for the company’s growth rate.”