by Ian Harvey
January 12, 2019
Planet Fitness Inc (NYSE: PLNT)
Planet Fitness continues to soar hitting a new 52-week high of $58.98 on Thursday with a gain of 8.8% since the start of the year. And “Cut-to-the-Chase Members” have gained 81% potential profit since the start of the week; and the expectation that there is still more upward movement to come!
Planet Fitness has been holding strong above a key support level despite the widespread stock market sell-off; and the stock boasts top-notch fundamentals and has shaped a new base pattern for a multiyear run.
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Details Presented Previously……..
New Hampshire-based Planet Fitness Inc (NYSE: PLNT), which franchises and operates fitness centers through its subsidiaries under the Planet Fitness name, is a growth stock to watch as it holds strong above a key support level despite the widespread stock market sell-off. Planet Fitness stock boasts top-notch fundamentals and could be shaping a new base pattern after a multiyear run.
Along with impressive share-price gains for more than two years, Planet Fitness has solid fundamentals as its low-price; "no-judgment-zone" gyms continue to attract more members. Earnings grew 22% to 84 cents a share in 2017. Analysts expect full-year growth to have accelerated to 44% in 2018. Accelerating earnings growth is one of the key traits of top growth stocks.
The Street sees earnings rising another 18% to $1.43 a share in 2019.
Revenue rose 40% in its latest quarter, the fast-growing chain's strongest top-line growth in four years. Brisk expansion has obviously helped, but the real head-turning metric here is the gym operator's consistently positive comps. Comparable-gym revenue rose a hearty 9.7% last time out, stretching Planet Fitness' streak of positive comps to a mind-boggling 47 quarters.
The story is just getting started. CEO Chris Rondeau -- who got his start at the company as the first reception desk worker at its first gym -- feels that Planet Fitness can easily double in size from its current empire of 1,646 locations. We're at nearly a dozen years of positive comps with every passing quarter. It's hard to bet against that trend continuing into 2019.
** OPTION TRADE: Buy PLNT FEB 15 2019 57.50 CALL at approximately $1.80. Sell price is left to your own judgment.The Result So Far………
Planet Fitness stock started the week just a bit more than $55.00 and closed at $58.80 Friday. The company has drawn interest from investors and traders, so expect the upward movement to continue. The stock trades on NYSE in the Consumer Discretionary sector and Leisure and Recreation Services industry.
So, for “Cut-to-the-Chase Members” members, who managed to execute this trade recommended by Stock Options Made Easy; potential profits of 81% were available on Thursday.
Entering the option trade at a cost of $2.10 or less; and the price of the option reached $3.80 on Thursday; a profit of 81% was made within a very short period of time. Therefore, one options contract would provide a profit of $170.00.
A NICE FINISH TO THE WEEK!
The stock has an impressive record of positive earnings surprises, as it hasn't missed the earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2018, Planet Fitness reported EPS of $0.28 versus consensus estimate of $0.24.
For the current fiscal year, Planet Fitness is expected to post earnings of $1.43 per share on $573.04 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $1.71 per share on $639.72 million in revenues. This represents a year-over-year change of 18.72% and 11.64%, respectively.
Shares of Planet Fitness have been moving higher, and the company still
appears to be a decent choice.
Therefore, NEW Trade to consider……..
** OPTION TRADE: Buy PLNT FEB 15 2019 60.000 CALL at approximately $2.00. Sell price is left to your own judgment.
AS ALWAYS THE DECISION IS YOURS!
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, which is obvious that it doesn’t apply in this case; but during earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!
Strategies to Consider……
When To Exit A Trade Based On Earnings?.....Read Article
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
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