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Investing.com -- UBS recently ranked the top fitness stocks, highlighting Planet Fitness (NYSE:PLNT) and Life Time Group (NYSE:LTH) as the sector’s strongest performers.
With health and wellness remaining a priority for consumers despite economic pressures, these companies have demonstrated resilience through their distinctive business models.
Planet Fitness (PLNT) continues to benefit from its asset-light franchise model, which provides relative macroeconomic resilience even as lower-end consumers face financial pressures.
While some investors express concern about near-term churn and same-store growth in the second half of the year, the company will soon lap price increases on its classic membership tier in Q3/Q4.
The company is expected to accelerate unit growth, though some questions remain about real estate availability and competitive dynamics. Bulls argue that churn concerns are exaggerated, with indicators showing improvement and potential for outperformance in new member additions.
Planet Fitness is anticipated to reveal its long-term growth strategy at its November 13th investor day, likely including mid-single-digit percentage same-store growth rates.
The company’s efforts to scale operations in Spain with an asset-light approach is viewed as a positive catalyst for 2026-2027.
For Life Time Group, UBS said the company faces investor concerns regarding the capital intensity of its growth strategy and its dependence on sale-leasebacks to drive new center openings. This financial structure may be limiting the company’s valuation multiple potential.
The company continues to deal with uncertainty related to private equity ownership, creating an overhang on the stock without clear visibility on timing resolution.
Near-term bearish perspectives focus on potential underperformance in average members per center growth in Q3 and center revenue per membership in the second half.
Bullish investors anticipate Life Time will deliver another quarter of results exceeding expectations, with comparable revenue per center membership above forecasts despite growing 3-4 percentage points slower than Q2.
They also point to strong demand for Life Time’s assets and a robust pipeline supporting accelerated unit openings in 2026-2027, with newer centers expected to be larger with improved unit economics.
Life Time Group reported second-quarter 2025 results that surpassed analyst expectations, with revenue reaching $761.5 million and an EPS of $0.37. The company also received a stock rating upgrade to Overweight from Morgan Stanley and a new Buy rating from UBS.
Both companies face unique challenges but remain positioned to capitalize on continued consumer interest in fitness offerings across different price points and experiences.
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