Buy 3 Health and Fitness Stocks to Enhance Your Portfolio Returns

Nalak Das

Thu, Oct 10, 2024, 5:04 AM 4 min read

Health and fitness companies focus on improving and maintaining physical well-being through products and services like gym memberships, fitness equipment, nutritional supplements and wellness programs. This space features companies that offer products and services designed to help individuals maintain healthy lifestyles.

Health and fitness companies benefit from consistent demand on growing global awareness of health issues and the importance of physical fitness. This trend is supported by rising rates of lifestyle-related diseases and a growing emphasis on preventive healthcare.

Here we recommend three stocks from the Health and Fitness space with strong price upside left in the near term. These are: American Well Corp. AMWL, Peloton Interactive Inc. PTON and Planet Fitness Inc. PLNT.

Growing Demand for Health and Fitness Companies

The space’s growth is backed by diverse revenue streams, which include subscriptions, product sales and services, making it attractive to investors seeking long-term gains. Moreover, technological advancements, such as fitness trackers and wearable fitness devices, provide new opportunities for growth and drive further consumer engagement and revenue potential.

However, the market is highly competitive, while economic downturns can impact consumer spending on non-essential health and fitness products. Rapid changes in consumer preferences and health trends can make it challenging for companies to lure customers continuously.

3 Health and Fitness Stocks to Buy

These stocks have strong growth potential for the rest of 2024 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks in the past three months.

Image Source: Zacks Investment Research

American Well Corp.

American Well is an enterprise platform and software company that delivers digitally enabling hybrid care in the United States and internationally. AMWL offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care, and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health.

AMWL provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, AMWL offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services.

Astonishing Price Upside Potential for AMWL Shares

American Well has an expected revenue and earnings growth rate of 2% and 72.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the last seven days.

At present, the short-term average price target of brokerage firms for the stock represents a jump of 99% from the last closing price of $10.04. The brokerage target price is currently in the range of $9-$66.

Peloton Interactive Inc.

Peloton Interactive operates an integrated fitness platform in North America and internationally. PTON offers connected fitness products under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. PTON markets and sells its products through e-commerce and inside sales, retail showrooms, and third-party retailers.

Attractive Price Upside Potential for PTON Stock

Peloton Interactive has an expected revenue and earnings growth rate of 4.3% and 57%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 24.4% over the last 60 days.

At present, the short-term average price target of brokerage firms for the stock represents an increase of 18.8% from the last closing price of $4.72. The brokerage target price is currently in the range of $2.5-$20.

Planet Fitness Inc.

Planet Fitness operates fitness centers under the Planet Fitness brand. PLNT operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. PLNT is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia.

Planet Fitness is engaged in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, PLNT operates corporate-owned stores in the United States and Canada.

Strong Price Upside Potential for PLNT Stock

Planet Fitness has an expected revenue and earnings growth rate of 6% and 8.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days.

At present, the short-term average price target of brokerage firms for the stock represents an increase of 7.9% from the last closing price of $80.45. The brokerage target price is currently in the range of $70-$100.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report

Peloton Interactive, Inc. (PTON) : Free Stock Analysis Report

American Well Corporation (AMWL) : Free Stock Analysis Report

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