Gym Stock Is Dirt Cheap Right Now
One of my favorite companies is currently on sale.
Planet Fitness (ticker: PLNT), the discount gym, has had a horrendous 2026.
Just look at its price chart.
Since the start of the year, Planet Fitness’s stock price has cratered over 60%.
Now, I love Planet Fitness.
I used to go all the time.
The gym was clean, there was plenty of equipment, and its basic membership was just $10 per month (now $15 per month).
It’s a gym for everyday people wanting a place to work out and be healthy.
Unfortunately, there aren’t any good locations near me anymore, so I stopped going after we moved a few years back.
But I still love the company and the service it provides.
However, a great company doesn’t mean a great stock, so what’s going on with Planet Fitness’s stock price?
Over the past few years, Planet Fitness has been growing revenue by double digits each year.
It all started to fall apart when the company released its annual report in February.
Revenue grew 12%, which lined up with its historical growth.
But management announced it only expected revenue to grow 9% in 2026.
The lower growth projection was the start of a rough couple of months for Planet Fitness.
Planet Fitness reported the Q1 results in May, and they were horrific.
Member growth stagnated in the first quarter, which is a terrible sign for Planet Fitness since so many new members sign up as part of their New Year’s resolution to get healthier.
Planet Fitness also scrapped a planned price hike for its premium members because of its poor new member growth in the first quarter.
Management lowered its guidance to only 7% revenue growth.
Investors freaked out, and Planet Fitness’s stock price tanked over 30% in just one day!
The past few months have been choppy, though Planet Fitness’s stock price is currently trading near a 52-week low.
Is the stock price collapse an overreaction or is Planet Fitness doomed?
The drop in the stock price made Planet Fitness incredibly cheap.
Its current 14x price-to-earnings ratio (P/E) is the lowest it’s been since the company started trading in 2015.
And the company is still incredibly profitable.
Over the past 12 months, Planet Fitness’s profit margin of 17% is one of the highest in the leisure industry and an all-time high for the company.
The company is also taking advantage of the discounted price.
In the second quarter, Planet Fitness repurchased around 4 million shares.
Plus, insiders are gobbling up shares.
Since the stock price crashed in May, insiders have bought up thousands of shares in Planet Fitness.
When a stock crashes, I always take a look.
And when company insiders are buying up shares following the crash, I pay very close attention.
Actions speak louder than words, and management investing in its own company is a sign it believes it can recover.
So, give Planet Fitness a look.
The stock is extremely undervalued right now, and its share repurchases and insider buying are signs the company is confident it can turn it around.
Do you have a gym membership?
It’s so much cheaper than buying all of the equipment yourself.
Coach Parker
Category: Stocks
