Planet Fitness(PLNT) Shares Soar 1.00% on Revenue Surge, Tax Relief

Planet Fitness(PLNT) shares rose to their highest level since February 2025 today, with an intraday gain of 1.00%.

The strategy of buying PLNT shares after they reached a recent high and holding for one week yielded a 34.19% return, underperforming the benchmark by 22.75%. With a Sharpe ratio of 0.38 and a maximum drawdown of -40.49%, the strategy faced significant volatility and risk, highlighting the challenges of such a short-term holding approach.

Planet Fitness reported an 11.5% increase in revenue to $276.7 million in the first quarter of 2025. This growth was driven by all three of the company's segments: franchise, corporate-owned clubs, and equipment. The strong performance across these segments highlights the company's robust business model and its ability to capitalize on market opportunities.

The Senate's decision to eliminate the gym tax and provide equipment relief has had a positive impact on Planet Fitness' stock price. This legislative change is expected to reduce operational costs for the company, potentially leading to increased profitability and further stock price appreciation.

Roth Mkm reaffirmed its "buy" rating for Planet Fitness and raised its target price from $110.00 to $115.00. This positive outlook from analysts reflects confidence in the company's future prospects and its ability to continue delivering strong financial results.