In this article, we will look at the 10 Best Fitness and Gym Stocks to Buy Now.
Overview of the Fitness and Global Wellness Industries
The fitness and wellness industries are projected to be major global players in the coming decades with the world shifting to healthy modes of living. Estimates by McKinsey show that the global wellness market has reached around $1.8 trillion, and has touched $480 billion in the US alone. Around 82% of US consumers rank wellness as their top priority. Similar sentiments can be seen resonating across the globe, as around 73% and 87% of the consumers in the UK and China report the same, respectively.
According to the Health and Fitness Club Global Market Report 2024 released by the Business Research Company, the health and fitness club market has also grown exponentially in recent years. It is estimated to continue on this growth trajectory, going from $92.90 billion in 2023 to $101.46 billion in 2024. Much of this growth can be attributed to an increasing number of apartment complexes offering fitness and gym perks, rapid urbanization, the rising popularity of group fitness classes, government programs promoting fitness and health, and the corporatization of jobs.
Social media influencers also have a major role in this significant mind shift, with many users getting inspired to undertake fitness endeavors and gym memberships to attain the signature “fit body” image. In addition, growth in fitness franchises, personalized training programs, and training plans are also boosting a shift towards fitness and preventive healthcare.
The health and fitness club market size is anticipated to continue growing in the coming decade. The report estimates it to rise at a CAGR of 9.3%, reaching around $144.82 billion in 2028. Some of the significant trends in this forecast include using artificial intelligence for personalized workout recommendations, adopting smart gym equipment, and using AI-powered fitness and health apps.
Gen Z and Millennials in the Fitness Industry
The population aged 20-64 is the largest consumer niche in the industry that has grown exponentially in the past five years. According to Scott Max, gym memberships make up almost 50% of the fitness industry, and around 45% of these members are millennials. Gen Z makes up approximately 35% of this industry. Despite millennials taking the lead in numbers, gym and fitness brands are competing to capture the preferences of Gen Z.
They are altering their business strategies, focusing on contract-free and low-price memberships. According to NielsenIQ (NIQ) and World Data Lab (WDL), the global fitness spending by Gen Z is estimated to reach $12 trillion by 2030. Similarly, estimates by Les Mills show that around 36% of Gen Z is active, while 30% use fitness facilities. Around 82% of these facilities include gyms or studios. However, a significant number also take a hybrid approach, training both in and out of the gym.
The Global Online/Virtual Fitness Market
Owing to these trends, the global online/virtual fitness market is also growing. According to the Global Online/Virtual Fitness Market Report 2023, the industry grew at a CAGR of 39.4%, going from $15.65 billion in 2022 to $21.82 billion in 2023. It is anticipated to continue on this growth trajectory, growing at a CAGR of 36.9% to reach $76.57 billion by 2027.
The primary driver of this growth is the increasing use of mobile phones and smart devices in the fitness industry. With users increasingly relying on their mobile phones and AI-enabled fitness apps to dictate their fitness and gym journeys, this growth trend is expected to persist.
With these trends in view, let’s look at the 10 best fitness and gym stocks to buy now.
10 Best Fitness and Gym Stocks To Buy Now
Our Methodology
To compile our list, we sifted through ETFs and online rankings to compile a list of 15 fitness and gym stocks. We then selected the top 10 stocks most popular among elite hedge funds. We sourced the hedge fund data from Insider Monkey’s database. The stocks are arranged in ascending order of the number of hedge funds that have stakes in them as of Q3 2024.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Fitness and Gym Stocks To Buy Now
10. Life Time Group Holdings (NYSE:LTH)
Number of Hedge Fund Holders: 27
Life Time Group Holdings (NYSE:LTH) is a holding company with lifestyle brands that offer fitness, health, and wellness experiences through a digital platform and its athletic country club destinations. It offers a range of fitness facilities, such as fitness floors with group fitness studios, tennis and basketball courts, LifeSpa, pools, LifeCafe, and more. The company’s Life Time Digital features include remote personalized training, weight loss and nutrition support, live streaming fitness classes, and wellness content. It operates more than 170 athletic country clubs across the US and Canada.
Life Time Group Holdings’ (NYSE:LTH) offerings are growing in popularity. Its total revenue increased by 18% to $693 million in fiscal Q3 2024, driven primarily by a 20% increase in enrollment fees and membership dues. Its incentive revenue also grew by 16%. In addition, the company’s center memberships grew by 5% compared to last year, ending fiscal Q3 2024 with more than 826,000 memberships. The number increases to 877,000 when combined with its digital on-hold memberships.
The company’s average revenue per center membership grew from $722 to $815 in fiscal Q3 2024. This growth was attributed to increased in-center activity and higher dues. Life Time Group Holdings (NYSE:LTH) has been transforming and improving every aspect of Life Time over the last four years, elevating its brands and evolving its clubs. These initiatives are bringing in positive growth for the company, taking its net income for fiscal Q3 2024 to $41.1 million compared to $7.9 million in fiscal Q3 2023. The company ranks tenth on our list of the best fitness and gym stocks to buy now.
Mairs & Power Small Cap Strategy stated the following regarding Life Time Group Holdings, Inc. (NYSE:LTH) in its Q3 2024 investor letter:
“The Fund also added one new name in the third quarter: Life Time Group Holdings, Inc. (NYSE:LTH). The company, based in Chanhassen, Minnesota, operates 175 health clubs across the US LifeTime’s clubs are upscale health and wellness centers targeting higher-income members. The company has an excellent brand, is experiencing significant demand for their offerings, and is led by a seasoned entrepreneurial founder.”
9. Under Armour Inc. (NYSE:UA)
Number of Hedge Fund Holders: 28
Under Armour, Inc. (NYSE:UA) develops, markets, and distributes branded athletic performance apparel, accessories, and footwear for men, women, and youth. It operates in four geographic segments: North America, EMEA, Asia-Pacific, and Latin America.
The company’s product offerings continue gaining momentum, including new products in its men’s apparel and footwear businesses. Its initial strategies for fiscal Q2 2025 were focused on its direct-to-consumer (DTC) and e-commerce channels. In such efforts, the company significantly reduced its promotional activities, especially in its e-commerce business in North America. Under Armour, Inc. (NYSE:UA) is also reducing its stock-keeping units (SKUs) to create a more premium product assortment that offers a cleaner and faster consumer experience.
Due to these initiatives, the company’s fiscal Q2 2025 revenue decreased by 11% to $1.4 billion. Its North American DTC business was also down for the quarter, primarily due to a continued decline in its e-commerce business, which resulted from proactive strategies to reduce promotional activities. Under Armour, Inc. (NYSE:UA) ranks ninth on our list of the 10 best fitness and gym stocks to buy now.
8. Garmin Ltd. (NASDAQ:GRMN)
Number of Hedge Fund Holders: 30
Garmin Ltd. (NASDAQ:GRMN) is a Switzerland-based company that operates through various segments, including fitness, outdoor, auto, marine, and aviation. It offers a range of applications and products, including golf devices, wearable devices, outdoor handhelds, training/pet obedience devices, dog tracking, and several other products specifically designed for use in fitness and activity tracking.
Its fiscal Q3 2024 earnings reported a 24% growth in consolidated revenue, reaching $1.59 billion and setting a new Q3 record for the company. It also attained record revenue in all of its business segments. The company has managed to consistently deliver strong results for several reasons. There is no single profile of the Garmin customer, and so its results are not correlated to the broad generations of consumer behavior. In addition, the company’s business is global and highly diversified in several segments, each targeting different consumers. This allows Garmin Ltd. (NASDAQ:GRMN) to leverage diverse growth opportunities and gives it a competitive market advantage.
The company’s fitness segment saw a revenue increase of 31% to $464 million in fiscal Q3 2024, with growth in all of its categories and the increased popularity of its advanced wellness products contributing to this growth. Garmin Ltd. (NASDAQ:GRMN) also celebrated the tenth anniversary of Garmin Health in fiscal Q3 2024. Garmin Health leverages its extensive high-quality sensor data and wearable portfolio to support wellness, patient monitoring, and population health. The company ranks eighth on our list of the 10 best fitness and gym stocks to buy now.
7. Planet Fitness, Inc. (NYSE:PLNT)
Number of Hedge Fund Holders: 34
Planet Fitness, Inc. (NYSE:PLNT) operates fitness centers in the United States through three segments: Corporate-owned stores, Franchise, and Equipment. It has around 2,575 stores in 50 US states, the District of Columbia, Mexico, Panama, Puerto Rico, Australia, and Mexico.
The company’s same-club sales grew by 4.3% in fiscal Q3 2024 and delivered a 5.3% revenue growth. Its membership is gaining popularity, ending fiscal Q3 2024 with around 19.6 million members. Planet Fitness Inc. (NYSE:PLNT) is undertaking several strategies to evolve its brand and maintain its industry leadership. It is redefining its brand strategy and pulling it through marketing. It is also focusing on enhancing its member experience, refining its products, and optimizing its format. In addition, the company is accelerating new club growth.
Planet Fitness Inc. (NYSE:PLNT) boasts growth opportunities in both new and existing markets across the US. It has a long-term target of 5,000 US clubs, and is primarily based on its 20,000-square-foot traditional Planet Fitness. The company is simultaneously working on smaller footprint clubs for less populated areas and infill locations. It also has plans to grow internationally in strategic markets and is building its presence in newer markets such as Spain, Mexico, and Australia.
Vulcan Value Partners stated the following regarding Planet Fitness, Inc. (NYSE:PLNT) in its Q2 2024 investor letter:
“Planet Fitness, Inc. (NYSE:PLNT) pioneered the “high value, low price” (HVLP) gym model and operates over 2,500 gyms globally with 18.7 million members. Their straightforward, no-frills approach offers excellent value, appealing to a diverse and casual fitness demographic. Members enjoy a clean environment, regularly updated equipment, and accessible pricing starting at $10 per month, with their premium “Black Card” membership providing extensive benefits and access to all locations. Planet Fitness captured roughly 90% of US gym membership growth from 2011-2019. The company’s dominant scale coupled with high advertising spend drives powerful growth, and the company plans to double its number of US locations. Planet Fitness demonstrates robust same-store sales growth, high EBIT margins, strong returns on capital, and excellent free cash flow conversion.”
6. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 35
Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness company that operates an interactive fitness platform. Its operations are divided into the Subscription and Connected Fitness Products segments. The company boasts a community of more than six million members, and offers tech-enabled, connected fitness and instructor-led classes to its members anywhere, anytime.
The company is aligning its cost structure to its current business size by delivering more than $200 million of run-rate cost savings from its cost restructuring plan by the end of the fiscal year 2025. It is also improving its unit economics across all its sales channels and products to generate profitable growth and meaningful free cash flow. Peloton Interactive, Inc. (NASDAQ:PTON) is also making strategic investments in innovations to boost its long-term growth. These investments include refining its market strategies, undertaking product development in both hardware and software features, and evolving its content for more engaging and diversified fitness experiences.
Peloton Interactive Inc. (NASDAQ:PTON) is also undergoing strength in its category-leading connected fitness subscription business. It has over 6 million loyal members, 586,000 app subscribers, 2.9 million connected fitness subscribers, and over $1.7 billion in annualized subscription revenue. The company ranks sixth on our list of the top fitness and gym stocks to buy now.
5. Dick’s Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 35
Dick’s Sporting Goods, Inc. (NYSE:DKS) is an omnichannel sports goods retailer that serves outdoor and fitness enthusiasts and athletes. It operates more than 850 Golf Galaxy, DICK’s Sporting Goods, Public Lands, Going Going Gone!, Moosejaw, and Warehouse Sale stores. The company carries an elaborate array of national brands, including Columbia, Adidas, Brooks, Carhartt, Hoka, Jordan, Nike, New Balance, and more. The company also operates Dick’s House of Sport, Golf Galaxy Performance Center, and GameChanger.
The company’s fiscal Q3 2024 earnings showed a 4.2% increase in comparable same-store sales. This growth was attributed to its four strategic pillars: deep engagement with the DICK’s brand, differentiated product assortment, omnichannel athlete experience, and knowledgeable teammates. Dick’s Sporting Goods, Inc. (NYSE:DKS) is continuing to invest in its digital and store experience, focusing on increased product knowledge, service, and training to engage with its athletes and customers.
It is also focusing on its expansion strategies. The company opened three Dick’s House of Sport locations in fiscal Q3 2024 and two more in November, bringing the total to 19 open stores ahead of the holiday season. It plans to continue its growth initiatives in 2025 and open around six Health and Support locations. This puts it on track to attain around 75-100 locations by 2027.
Emeth Value Capital made the following comment about DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q2 2023 investor letter:
“For as often as the phrase “a private equity approach to public markets” is repeated, it is surprising to observe the great divide that exists between even very sophisticated long-term investors in public and private markets. There is perhaps no more well-trodden battleground than that of valuation marks. Public investors, particularly in times of market stress, are quick to express frustration that private equity portfolios are not marked to market. The title of Cliff Asness’ recent opinion piece in Institutional Investor captures the sentiment well, “Why Does Private Equity Get to Play Make-Believe With Prices?”. The level of discontent is surprising for two reasons: first, the difference in methodology is quite easily understood, and second, contrary to public markets gospel, it is evident that liquidity and the discovery of value are in no way synonymous. Indeed, they may be opposing forces more often than not. At the risk of oversimplifying, one can think of private equity marks as single-variable valuations, while public equity marks are dual-variable valuations. Both incorporate the level of earnings in a business, but while multiples are held relatively constant in private equity marks, public market marks also incorporate sentiment in the form of a changing multiple. The problem is that Mr. Market tends to change his opinion quite often. Consider the case of one of our former portfolio companies, DICK’S Sporting Goods, Inc. (NYSE:DKS)…” (Click here to read the full text)
4. Skechers USA, Inc. (NYSE:SKX)
Number of Hedge Fund Holders: 42
Skechers USA, Inc. (NYSE:SKX) develops, designs, and markets a range of footwear, apparel, and accessories for men, women, and kids. Its athletic offerings make it a popular brand among fitness enthusiasts. The company made a new quarterly sales record in fiscal Q3 2024 by attaining $2.35 billion in sales. This translates to an increase of 16%, or $323 million. It saw growth in both of its segments, with Wholesale growing by 21% and Direct-to-Consumer by 9.6%. It had a balanced growth of 16% internationally and 15% domestically. This growth was attributed to the increasing acceptance of the company’s diverse product offerings by consumers.
Skechers USA (NYSE:SKX) offers style, quality, comfort, and innovation at a reasonable price, which gives it a competitive market edge. It focuses on creating purchase intent and increasing awareness of its lifestyle and performance technologies through feature-focused marketing campaigns led by its distinguished team of athletes and ambassadors. For instance, Snoop Dogg and Philadelphia 76ers basketball star Joel Embiid attained golden moments at the Paris Games wearing Skechers earlier in fiscal Q3 2024.
The company is leveraging such initiatives to boost purchase intent and ensure its offerings are available globally, building efficiencies within its business for profitable growth. Skechers USA, Inc. (NYSE:SKX) ranks fourth on our list of the 10 best fitness and gym stocks to buy now.
3. BellRing Brands, Inc. (NYSE:BRBR)
Number of Hedge Fund Holders: 43
BellRing Brands, Inc. (NYSE:BRBR) is a consumer product holding company that provides ready-to-drink (RTD) protein shakes, powders, nutrition bars, and other RTD beverages. Its primary brands are Dymatize and Premier Protein. BellRing Brands, Inc. (NYSE:BRBR) operates through protein-based consumer goods.
The company’s net sales for fiscal Q4 2024 increased by 18% over the prior year, reaching $556 million. Its Premier Protein brand is increasingly resonating with its target audience, resulting in a 20% net sales growth that was primarily attributed to strong volume growth for both powders and RTD shakes. Its RTD shake sales also increased by 21%, boosted by distribution gains and organic growth. The overall consumption for October increased by 28%. This growth was attributed to the company’s Pumpkin Spice fall seasonal flavor, which resonated greatly with consumers.
The primary drivers of volume growth for the company’s Premier Protein brand include increased organic growth and promotional activities, expanded pack sizes and formats, distribution gains on existing and new products, and innovation. BellRing Brands, Inc.’s (NYSE:BRBR) Dymatize brand also drove growth. Net sales for the Dymatize international business segment grew by 30% in fiscal Q4 2024, delivering growth for the quarter. The company also introduced a new national marketing campaign for the brand with San Francisco All-Pro running back Christian McCaffrey, which was launched on November 14 during NFL Thursday night football. In addition to advertising, BellRing Brands, Inc. (NYSE:BRBR) is launching its new product platforms in the first half of fiscal year 2025.
Wasatch Core Growth Fund stated the following regarding BellRing Brands, Inc. (NYSE:BRBR) in its fourth quarter 2023 investor letter:
“BellRing Brands, Inc. (NYSE:BRBR)) was also a significant contributor. BellRing’s offerings include nutritional shakes, powders, bars, and other products primarily marketed under the Premier Protein and Dymatize brands. We like the company’s asset-light operating model, which relies on outsourced production. Given the low cost of BellRing’s products and perceived value among a loyal and growing group of health-conscious consumers, we believe the company has a durable, economically resilient business. Moreover, we think the intellectual property associated with BellRing’s shelf-stable, good-tasting products is relatively difficult for competitors to replicate. Amid the fallout from the Covid-19 pandemic, the company’s production capacity had been severely constrained, impacting revenues and earnings. In 2023, BellRing was able to add new outsourced production facilities—and even more will be added in 2024. Finally, the company and the stock benefited from the proliferation of GLP-1 agonists, such as Ozempic, being used for weight loss. Dieters often consume BellRing’s products in an effort to ingest enough nutrients. That said, the GLP-1 trend wasn’t part of our original investment thesis and isn’t why we continue to own the stock.”
2. Lululemon Athletica, Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 45
Lululemon Athletica (NASDAQ:LULU) is an athletic apparel, footwear, and accessories company. Its operations are spread over the Americas, China Mainland, APAC, and EMEA. The company’s offerings are specifically designed for a healthy lifestyle, including a range of athletic activities. It also offers fitness-inspired accessories and apparel designed for being on the move.
The company’s fiscal Q3 2024 total revenue increased by 9%, or 8% in constant currency. China Mainland grew by 39% (36% in constant currency), while the Rest of the World grew by 27% (23% in constant currency). Lululemon Athletica’s (NASDAQ:LULU) consumer retention is high, giving it the opportunity to drive higher revenue per guest with increased newness in its assortment. The company is continuing to grow its membership program, currently standing at around 24 million members. The offers it makes to its members, including partner perks, members-only events, and early access, are the primary drivers of this growth.
The company’s unaided brand awareness stands at 36% in the US, allowing it to grow as it continues to open and optimize stores and launch new brand campaigns and activations. Lululemon Athletica (NASDAQ:LULU) ranks second on our list of the best fitness and gym stocks to buy now.
Middle Coast Investing stated the following regarding Lululemon Athletica Inc. (NASDAQ:LULU) in its Q2 2024 investor letter:
“I mentioned last quarter and higher above that I like buying quality stocks on sale. Lululemon Athletica Inc. (NASDAQ:LULU), the 2nd worst performer in the S&P 500 this year, qualifies. I published a full thesis on the stock before its most recent earnings, but the basics: the yoga pants and clothing company has had an amazing post-pandemic run that is approaching its end. Its growth in the US is slow/non-existent at the moment, but it is growing very fast in China and Europe. I think that international growth is likely to endure, and that its US slowness is likely to be temporary. Lululemon shares are not ‘cheap’, but they are on sale for an average price, and I think the company will grow faster than average over the next five years. I would be wrong if Lululemon is a fad gone bust, or faces a huge post-pandemic hangover as people get used to leaving the house more. We’ll see.”
1. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 75
Nike, Inc. (NYSE:NKE) is a globally popular designer, marketer, and distributor of athletic footwear, accessories, equipment, and services for sports and fitness activities. Its operating segments span EMEA, Greater China, APLA, and North America. The company also designs products specifically for the Converse and Jordan brands.
Nike, Inc. (NYSE:NKE) took a significant step in fiscal Q1 2025 by shifting its portfolio to create balance in its business. It has been intentionally reducing the business proportion driven by its classic footwear franchises, including Air Jordan 1, Air Force 1, and Dunk. Revenue from these franchises thus decreased in fiscal Q1 2025 as the company continued to tighten its marketplace supply. The company is actively rebalancing product allocations to its highest traffic channel to maximize full-price realization and franchise health.
However, Nike. Inc. (NYSE:NKE) also saw growth in multiple sports dimensions, reflecting its continued popularity. Its men’s fitness, men’s global football, and men’s and women’s running footwear led this growth. Two of the company’s largest performance franchises, Mercurial and Global Football and the G.T. series in basketball, also delivered double-digital growth. Nike. Inc. (NYSE:NKE) also launched one of its biggest Running brand investment campaigns in years, which is expected to carry into the holiday season. Initial estimates show strong consumer engagement for the campaign.
ClearBridge Large Cap Growth Strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q2 2024 investor letter:
“Other moves during the quarter included sales of United Parcel Service (UPS) and NIKE, Inc. (NYSE:NKE). Nike has become overly reliant on key platforms, like Jordan, for revenue growth while innovation in areas like running has lagged. Nike could face continued revenue and profit pressure as it invests to re-invigorate innovation and re-position the business back toward wholesale outlets. As such, we are seeking out better ways to participate in the global consumer recovery in companies where earnings estimates have already reset.”
Overall, NKE ranks first among the 10 best fitness and gym stocks to buy now. While we acknowledge the potential of fitness and gym stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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