With folks returning to the gym, five fitness stocks for investors to consider this summer are Brunswick Corp. (BC, Finance), Planet Fitness Inc. (PLNT, Finance), Peloton Interactive Inc. (PTON, Finance), Nautilus Inc. (NLS, Finance) and Technogym SpA (THOUSAND: TGYM, Financial) is a premium feature according to GuruFocus All-in-One Screener.
According to a study by the financial services company Jefferies Financial Group Inc. (JEF, Finance) US gym traffic in May was about 83% of its January 2020 level, while online searches for “gyms near me” accelerated in May compared to April. Jefferies also said the search interest in gyms mimics the level typically seen at the start of the new year when people make resolutions to lead healthier lifestyles.
Traffic to the gyms is returning as states lift Covid-19 restrictions
The gym traffic investigation comes a few days after the Covid-19 restrictions were lifted in New York. In addition, New Jersey Governor Phil Murphy said Friday that the state fully vaccinated 4.7 million people across the state, with 77% of the state’s population having received at least one vaccination, making Joe Biden’s goal of at least 70 Getting% of the US population wipes out at least one vaccination by July 4th.
With traffic returning to the gym, investors can look for opportunities in the stocks of companies that manufacture fitness equipment and provide fitness and fitness services. GuruFocus’ all-in-one screener allows users to search for investment candidates within a specific industry or industry: gym and fitness stocks, for example, are part of the travel and leisure industry.
Braunschweig (BC, Financial) makes a wide range of recreational equipment, including fitness equipment from brands like Life Fitness and Hammer Strength. GuruFocus rates the Mettawa, Illinois-based company’s profitability 8 out of 10 due to several positive investment signals including a high Piotroski F-Score of 9, a three-year revenue growth rate that outperforms over 84% of global competitors, and an operating margin, which has increased by an average of 5.7% per year over the past five years.
Gurus with holdings in Brunswick include Chuck Royce (trades, portfolio) Royce & Associates, Pioneer Investments (trades, portfolio) and Steven Cohen (trades, portfolio) Point72 Asset Management.
Planet Fitness (PLNT, Financial) Franchises and operates fitness centers in the US GuruFocus rates the profitability of the Hampton, New Hampshire-based company a 6 out of 10: operating margins exceed over 85% of global competitors, although net margins and return on investment are just over 60% of global lie leisure companies.
The gurus with stakes in Planet Fitness include the Baron Funds from Ron Baron (trades, portfolio) and Tudor Investment from Paul Tudor Jones (trades, portfolio).
Peloton (PTON, Financial) operates three interactive fitness platforms: connected fitness products, subscriptions, and others. The company generates the majority of its revenue from the sale of connected fitness products, which include the sale of exercise bikes, treadmills, and related accessories.
GuruFocus rates the New York-based company’s financial strength 6 out of 10, based on a strong Altman Z-Score of 8.49, an interest coverage ratio that exceeds over 72% of global competitors, and a cash-to-debt Ratio that surpasses 70% of global competitors, although more than 58% of global travel and leisure companies have underperformed debt ratios.
Gurus with large holdings in the peloton include Baillie Gifford (trades, portfolio), Tiger Global Management from Chase Coleman (trades, portfolio) and the Harbor Capital Appreciation Fund from Spiros Segalas (trades, portfolio).
Nautilus (NLS, Financial) develops home fitness equipment through brands such as Bowflex, Schwinn, JRNY and Nautilus. GuruFocus rates the Vancouver, Washington-based firm’s financial strength 8 out of 10 on several positive investment signs, including a high Piotroski F-score of 7, a strong Altman Z-score of 5.9, and interest coverage and leverage ratios representing more than 80% of global competitors.
Technogym (THOUSAND: TGYM, Financial) manufactures fitness equipment and offers a wide range of wellness, exercise and rehabilitation solutions to individuals in Europe and North America. GuruFocus rates the Italian fitness company’s financial strength and profitability at 7 out of 10 on several positive investment signs, including a strong Altman Z-Score of 5.05, an interest coverage ratio that exceeds more than 76% of global competitors, and profit margins and returns outperform more than 80% of the world’s travel and leisure businesses