Planet Fitness (PLNT) Soars 2.59% on Analyst Upgrade

Planet Fitness (PLNT) shares surged 2.59% intraday, marking the seventh consecutive day of gains and reaching its highest level since February 2025. The stock has seen a remarkable 11.69% increase over the past week, reflecting strong investor confidence in the company's recent performance and future prospects.

The strategy of buying Planet Fitness (PLNT) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The 1-week holding period allowed investors to capture short-term momentum, which was suitable for a stock with volatile short-term movements.

Short-Term Momentum: The stock's recent high provided a trigger for entry, and the 1-week holding period enabled investors to benefit from short-term momentum. This approach worked well for a stock like PLNT, which experienced significant weekly volatility.

Performance Analysis: From May 20, 2020, to May 20, 2025, the strategy achieved a total return of approximately 58%, which was the stock's annualized return during this period. This indicates that the strategy effectively captured the stock's growth over the 5-year period.

Volatility Consideration: However, it's important to note that this strategy may not be suitable for all stocks, especially those with low volatility. Planet Fitness exhibited significant volatility, with weekly fluctuations that made this strategy viable.

In conclusion, buying Planet Fitness shares after they reached a recent high and holding for 1 week yielded a 58% return over the past 5 years, leveraging the stock's volatile short-term movements. This strategy highlights the importance of considering both stock characteristics and market conditions when developing investment strategies.

On May 22, Stifel analysts upgraded Planet Fitness stock from "Hold" to "Buy," significantly raising the price target from $82 to $120. This upgrade was driven by stabilizing new membership rates and potential tailwinds projected to boost comparable sales in the coming years. The analysts' positive outlook suggests that Planet Fitness is well-positioned to capitalize on growing demand for fitness services, which could lead to sustained growth in revenue and earnings.

The upgrade also coincides with increased short interest and heavier-than-usual put exposure among short-term traders. This indicates that there is significant pessimism surrounding the stock, which could create opportunities for further gains as this pessimism unwinds. As more investors recognize the company's strong fundamentals and growth potential, the stock could continue to rise, driven by increased buying pressure and reduced selling pressure.

Overall, the recent upgrade and positive outlook from Stifel analysts, combined with the stock's strong performance and potential for further gains, make Planet Fitness an attractive investment opportunity. As the company continues to execute on its growth strategy and capitalize on growing demand for fitness services, investors can expect to see sustained growth in the stock price, making it a compelling addition to any investment portfolio.