Those New Year’s Resolution trades are on the move.
On November 1, we noted:
Look at Planet Fitness (PLNT) for example. For the last several years, the stock tends to take off around the holidays. It’s even starting to do so again now. In fact, after finding double bottom support, PLNT is starting to pivot higher. From a current price of $65.56, we’d like to see it closer to $80 by December. Helping, Raymond James’ analysts just added PLNT to their “Analyst Current Favorites” list because it has more near-term upside potential.
Today, PLNT is up $6.42, or 10.4% to $68.05 on a volume spike to 2.2 million.
All thanks to raised 2022 guidance, and record membership in these last few months of 2022.
In its third quarter, the company posted adjusted EPS of 42 cents on sales of $244.4 million. That’s up nicely from the 25 cents on sales of $154.3 million posted a year earlier. The Street was only looking for 38 cents on sales of $234.6 million. PLNT also said it expects for revenue to jump within a high-50% range.
“We continue our steady recovery from the pandemic, and ended the quarter with more than 16.6 million members, an all-time record high for Planet Fitness,” the company said in a press release. “Members trends remained strong in the quarter with joins back to historical pre-pandemic seasonality. Also, members who are visiting the gym continue to visit more frequently, and cancellations are lower compared to 2019.”
Even better, this latest move fits the stock’s end of year pattern.
From a current price of $67.89, we’d like to see PLNT again test $85, near-term.
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