Planet Health (PLNT) Rises 13% in 6 Months: Extra Upside Left?

Planet Health, Inc. PLNT is poised to learn from strategic partnerships, digitalization initiatives and reopening of shops. Furthermore, concentrate on member acquisition by means of advertising initiatives bode nicely.

Shares of Planet Health have outperformed the business previously six months. The inventory has gained 12.8% towards the business’s fall of seven.4%. An upward revision in earnings estimates for 2022 displays analysts’ optimism within the firm’s progress potential. Previously 30 days, the Zacks Consensus Estimate for 2022 earnings has moved up 4.9% to $1.71 per share.

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Progress Drivers

Strategic Initiatives: To increase its presence, Planet Health is concentrated on strategic partnerships and worldwide expansions. The corporate collaborated with iFit, a pacesetter in on-line streaming residence exercises. With this partnership, the corporate additionally initiated a sequence of recent exercises with minimal or no tools, thereby making it obtainable to everybody solely on the Planet Health App. The sequence could be obtainable for members and non-members freed from value. Regardless of the coronavirus disaster, administration said that a number of private-equity-backed franchise teams expressed curiosity in additional investments within the Planet Health model.

The corporate continues to concentrate on its advertising muscle to drive progress. The corporate said that it has transitioned from 16 advertising businesses to at least one (Publicis Groupe) to gas incremental member progress. According to the promoting technique (overlaying nationwide and native ranges), the transition paves a path for decrease media prices together with stable member acquisition. As of Sep 30, 2021, the corporate had greater than 15 million members in contrast with 14.8 million members as of Jun 30, 2021.

Digital Efforts: Given the stable buyer engagement in its health content material, the corporate is presently testing a digital-only subscription membership for $5.99/month by means of its cellular app ‘PF plus’. Via this, the corporate intends to offer extra premium content material other than free content material. This contains stay each day exercises, digital health courses (accessible by means of residence and health club) and aggressive exercise sequence to assist prospects advance over time. With this initiative, Planet Health is optimistic relating to the long run conversion of non-members as nicely.

Reopening of Shops to Drive Progress: The corporate is benefiting from the reopening of shops. As of Sep 30, 2021, 2,189 shops have reopened. Of the entire, 2,083 have been franchisee-owned shops and 106 have been corporate-owned shops. The corporate said that the final group of reopenings is returning to pre-pandemic ranges quicker than shops that reopened in 2020. Given the expansion potential on the again of fixing market dynamics together with tailwinds associated to well being and wellness, the corporate is optimistic for a 4,000-plus home retailer alternative over the long run.

Upbeat Views: The corporate raised its steerage for 2021. For 2021, the corporate expects revenues within the vary of $570-$580 million, up from the prior estimate of $530-$540 million. Adjusted EBITDA for 2021 is estimated between $210-$220 million, up from the prior expectation of $200-$210 million vary. Adjusted internet earnings per share for 2021 is anticipated between 75 cents and 80 cents, up from the prior estimate of 65-70 cents. The metrics are based mostly on the belief that there isn’t any worsening of the COVID-19 pandemic which may have an effect on efficiency, like extended retailer closures or different mandated operational restrictions.

Zacks Rank & Different Key Picks

Planet Health presently carries a Zacks Rank #2 (Purchase). You may see the whole listing of in the present day’s Zacks #1 Rank (Sturdy Purchase) shares right here.

Another top-ranked shares from the Zacks Client Discretionary sector embody Guess’, Inc. GES, Crocs, Inc. CROX and RCI Hospitality Holdings, Inc. RICK.

Guess sports activities a Zacks Rank #1. The corporate has a trailing four-quarter earnings shock of 97%, on common. Shares of Guess have elevated 8.4% previously three months.

The Zacks Consensus Estimate for GES’s 2022 gross sales and EPS suggests progress of 38.6% and 4,342.9%, respectively, from the year-ago interval’s ranges.

Crocs flaunts a Zacks Rank #1. The corporate has a trailing four-quarter earnings shock of 41.6%, on common. Shares of Crocs have elevated 53.9% previously yr.

The Zacks Consensus Estimate for CROX’s 2022 gross sales and EPS signifies an increase of 48.8% and 25.8%, respectively, from the year-ago interval’s ranges.

RCI Hospitality sports activities a Zacks Rank #1. The corporate has a trailing four-quarter earnings shock of 67.7%, on common. Shares of RCI Hospitality have surged 82.9% previously yr.

The Zacks Consensus Estimate for RICK’s 2022 gross sales and EPS suggests progress of 34.9% and 22.1%, respectively, from the year-ago interval’s ranges.

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