Below we presented the list of top 5 fitness stocks to buy now. For industry statistics as well as a more comprehensive list please see 12 Best Fitness Stocks To Buy Now.
5. Planet Fitness, Inc. (NYSE:PLNT)
No of HFs: 45
Total Value of HF Holdings: $1.5 Billion
Planet Fitness is the top 5 in our list of best fitness stocks to buy now. The company owns and operates a chain of fitness clubs that offer personal training programs, massage facilities, and alike. For the third quarter of 2020, the company reported total revenue of $105.4 million, a 36.8% decrease from the same period of 2019.
The top hedge fund holder of this stock is Karthik Sarma’s SRS Investment Management with over $361 million invested in the stock at the end of September.
Christopher Rondeau, CEO of Planet Fitness sold 42,929 shares of PLNT on December 8, 2020, at an average price of $75.47 per share. The total sale was $3.2 million.
Mark McElroy/Shutterstock.com
4. Lululemon Athletica, Inc. (NASDAQ:LULU)
No of HFs: 50
Total Value of HF Holdings: $1.2 Billion
Lululemon is a yoga-inspired, technical athletic apparel company founded in Vancouver. The company produces and markets technical athletic wear for yoga, running, working out, and alike. During the third quarter of 2020, the company topped analyst expectations for growth with adjusted earnings per share of $1.16, compared to projections of $0.88 per share.
In an article, we mentioned why LULU stocks is a compelling investment case and what Brown Advisory had to say about the stock:
“The recent market volatility afforded us the opportunity to swap out of our position in TJX Companies into Lululemon Athletica. While nothing at TJX was broken, our action was purely an upgrade from one good business model into an even better one, in our view. We believe Lululemon has an exceptional business model within the athleisure apparel space. The company has complete control over its product line distribution, which is rather unique for an apparel company. This gives the company a favorable margin structure, coupled with a fast-growing top line. As compared to TJX, Lululemon also benefits from a higher percentage of sales from e-commerce, which is becoming more important in the near and long term.”
Eric Broder Van Dyke/Shutterstock.com
3. Peloton Interactive, Inc. (NASDAQ:PTON)
No of HFs: 58
Total Value of HF Holdings: $3.4 Billion
Peloton Interactive, Is an American exercise equipment company founded in 2012. The company pioneered connected, technology-enabled fitness and streaming of classes for members. They are one of the largest interactive fitness platforms in the world with over 2.6 million members. During the fourth quarter of 2020, PTON reported a generated total revenue of $607 million, representing 172% year-on-year growth.
In an article, we mentioned why PTON stock in a compelling investment case and GreenWood Investor’s letter where he highlighted a few stocks including PTON,
“I briefly touched on Peloton in the last letter, our second-largest position, and we have provided our initiation note on our public research page. Peloton is a clear winner from Covid-19, but with the near-term launch of a cheaper treadmill, after having conquered nearly 5% of the boutique fitness studio market in the United States, we think it’s poised to accelerate on the share gains. It has the scale, network effects, and the second-highest customer satisfaction of any company in the world. Its business model behaves more like a luxury company than a fitness company. With over half of American exercisers now considering joining its ecosystem, the company will continue to compound meaningfully beyond Covid-19.”
Copyright: halfpoint / 123RF Stock Photo
2. Dexcom, Inc. (NASDAQ:DXCM)
No of HFs: 58
Total Value of HF Holdings: $1.5 Billion
Dexcom, Inc was founded in 1999, it is a company headquartered in San Diego, California that develops, manufactures, and distributes continuous glucose monitoring systems for diabetes management. During the third quarter of 2020, the company’s revenue grew 26% versus the same quarter of 2019 to $500.9 million.
Is DexCom likely to remain resilient from the COVID-19 impact? In an article, we mentioned Brown Advisory’s words on DXCM,
“The right words to describe DexCom’s attractive performance are hard to find. Despite an expanded approval of Abbott’s competing glucose monitoring device, the stock has remained resilient.”
1. Nike, Inc. (NYSE:NKE)
No of HFs: 75
Total Value of HF Holdings: $4.2 Billion
The top one fitness stock to buy now is Nike, Inc. an American multinational corporation with headquarters located in Beaverton, Oregon in the Portland metropolitan area. They are engaged in the design, production, and marketing of footwear, apparel, equipment, accessories, and services. During the fiscal 2020 fourth quarter, the company reported a digital sales increase of 75%.
UCLA Athletics recently announced a six-year agreement with Nike, Inc. to make Jordan Brand the Bruins’ official athletic footwear, apparel, and equipment provider beginning July 1, 2021. UCLA Director of Athletics Martin Jarmond said,
“UCLA is elite, and our student-athletes deserve every resource in their pursuit of excellence. We sought to partner with the best in the world; that is Nike and Jordan Brand. Going into this process, our top priority was to secure the best quality and most innovative product to help our student-athletes and coaches compete for championships.”
The top hedge fund holder is Ken Fisher’s Fisher Asset Management with over $820 million invested in the stock at the end of September.
Nike was mentioned as the top 10 blue-chip stock in the 15 Best Blue Chip Stocks to Buy Now. Click here to check out the other blue-chip stocks to buy now.
In a separate article, Polen Capital’s investor highlighted NKE and this is what he had to say:
“The adjustments to Nike and Adidas were a function of COVID-19 spread mitigation policy impacts and price. We believe both companies possess multiple competitive advantages working in concert that should allow them to emerge even stronger relative to competitors once humanity normalizes. However, the fact remains that the majority of their brick-and-mortar stores globally were closed. We applaud the business’s capital allocation to create true omnichannel capabilities in recent years, but these efforts likely will not be enough to offset the lack of business from other areas impacted by the coronavirus. We remain confident in both companies long term, but we are mindful of the challenges of operating in the current retail environment and believe our position weightings reflect this awareness.”
Please also see 10 Best Cybersecurity Stocks to Buy Now and 10 Best Auto Stocks to Buy Now
360b / Shutterstock.com
Disclosure: None.
