On September 26, 2022 at 8:48 p.m., Planet Fitness is trading at $57.12 on the local New York Stock Exchange. Planet Fitness belongs to the “Recreational Facilities” segment.
Based on a total of 7 evaluation criteria, we have developed an evaluation of the current level of Planet Fitness. At each stage, the company receives a Buy, Hold or Sell rating. This results in a final weighting of the overall rating.
1. Sentiment and buzz: The internet can amplify or even change mood. Depending on the intensity of the discussion, that is, the number of verbal contributions on social networks and the frequency and depth of the mood change, there are new evaluations to share. At Planet Fitness, we have measured strong long-term activity in terms of intensity of discussion and assign a Buy rating to this signal. The mood change rate shows a negative change according to our measurement. Thus, we arrive at the overall “Sell” result for the long-term mood picture.
2. Fundamental: The price/earnings ratio (P/E) is currently 71.14. This means that for every euro of profit from Planet Fitness, the exchange pays out 71.14 euros. This is 5 percent less than what is paid for comparable securities in the industry. In the “hotels, restaurants and leisure” category, the average value is currently 74.56. As a result, the stock is undervalued and is therefore rated Buy on a P/E basis.
3. Industry Comparison Stock Price: Planet Fitness achieved a performance of -13.95 percent in the last 12 months. Similar stocks in the Hotels, Restaurants and Leisure industry rose 23.06% on average, trailing Planet Fitness by -37.01% to industry peers. The “Consumer Discretionary” sector had an average return of 40.34 percent over the past year. Planet Fitness was 54.29 percent below that average. Poor performance in both industry and sector comparisons leads to a “Sell” rating in this category.
Buy, keep or sell Planet Fitness?
How will Planet Fitness evolve now? Is it worth entering or should investors sell? Find out the answers to these questions and why you need to act now in Planet Fitness’s latest review.