Planet Fitness (PLNT), based in Newington, New Hampshire, is a franchiser and operator of fitness centers in the U.S., observes Leo Fasciocco, technical expert and editor of Ticker Tape Digest.
With annual revenues of $430 million, Planet Fitness operates franchised and company-owned stores. It also sells equipment. The franchise segment covers operations in the U.S., Puerto Rico, the Dominican Republic and Canada.
The company-owned stores operate in the U.S. and Canada. The equipment segment covers the sale of equipment to franchisee-owned stores. The company has 10.5 million members and 1,432 stores of which 1,261 were franchised and 58 company owned.
Technically, the stock drove higher last Friday and broke out from its eight-week flat base. The move carried the stock to a new all-time high. That is bullish and we see more on the upside.
We featured PLNT as an accumulation play earlier last week when it reported strong earnings for the fourth quarter. PLNT reported fourth quarter net of 34 cents a share, topping the Street consensus at 32 cents a share. That compares with 24 cents the year before. The highest estimate for the quarter was at 36 cents a share.
The stock spiked higher following that announcement and was able to clear its breakpoint line. The stock closed near its high for the session. That is bullish.
Since the stock selloff in early 2016, PLNT has been driving steadily higher making a fourfold from its low. The stock's 12-month performance chart shows the stock climbing 62% versus a 3% gain for the stock market.
PLNT's daily chart shows the stock climbing from around $46 back in October to a peak near $59 by January. The stock put down a tight, flat base.
The stock had two intraday breakouts but then fell back later in the day. However, last Friday, PLNT broke out again, but this time held strong ending in the day near its high for the session. The stock's momentum indicator is solidly bullish.
Earnings Looking out to this year, analysts predict an 16% increase in net to $1.45 a share from the 1.25 for 2018. Net for the first quarter of 2019 should climb 15% to 31 cents a share from 27 cents the year before. The highest estimate on the Street is at 34 cents a share.
The company has topped the quarterly Street consensus estimate the past 14 quarters. That is impressive. We rate PLNT a good intermediate-term play. We are targeting PLNT for a move to $75 within the next few months, or sooner. A protective stop can be placed near $57.
