Why Planet Fitness (PLNT) is a Top Momentum Stock for the Long-Term

Core Viewpoint - The article emphasizes the importance of the VGM Score, which combines value, growth, and momentum styles to identify attractive investment opportunities, particularly in conjunction with the Zacks Rank [1][15]. Company Overview - Planet Fitness (PLNT) is a leading franchisor and operator of fitness centers in the United States, with approximately 19.6 million members and 2,599 stores across various regions, including the U.S., Canada, and Australia as of March 31, 2024 [8]. - As of December 31, 2023, about 90% of all franchise stores were owned and operated by franchisee groups [8]. Earnings Estimates - For fiscal 2024, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $2.43 per share [5]. Zacks Rank and Style Scores - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with a focus on stocks rated 1 (Strong Buy) or 2 (Buy) [6][7]. - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [7]. - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, where A indicates the best chance of outperforming the market [15][16]. Investment Recommendation - Planet Fitness is currently rated 3 (Hold) on the Zacks Rank but has a VGM Score of A, indicating strong potential for investors [19]. - The stock has a Momentum Style Score of A, with shares increasing by 1.9% over the past four weeks, making it a noteworthy option for momentum investors [21][22].