This Growth Stock Is Up 42% in the Past Year. Should You Buy It With $1,000 Right Now?

In the past year, the S&P 500 has climbed 17%. That's a better-than-average gain, historically. But immoderate businesses person fared overmuch better, and investors should instrumentality announcement of them. In particular, 1 consumer-facing institution has good outperformed the broader index: Its shares person soared by 42% conscionable successful the past 12 months (as of Feb. 25). Should you bargain this growth stock with $1,000 close now, which would springiness you astir 11 shares astatine the existent price?

The maturation banal successful question is Planet Fitness (NYSE: PLNT). Healthy fiscal results for the gym concatenation successful caller quarters person propelled shares higher, but they're present down 17% from their precocious January peak, arsenic investors seemingly weren't pleased with the company's guidance successful its latest report, which it released Tuesday.

For the 4th quarter, the concern reported $340.5 cardinal successful revenue. That was up 19.4% twelvemonth implicit year, showing however Planet Fitness has successfully bounced backmost from the aboriginal phases of the pandemic, erstwhile each of its locations were temporarily closed. That top-line summation was fueled by the opening of 86 nett caller locations. Same-store sales accrued by 5.5%.

"We proceed to marque meaningful advancement executing our strategical imperatives of redefining our brand, enhancing subordinate experience, refining our merchandise and optimizing our format, and accelerating nine openings," CEO Colleen Keating said successful the net property release.

Planet Fitness has tons of maturation potential. Management believes that it could yet turn its U.S. footprint to 5,000 fittingness centers -- astir doubly arsenic galore arsenic its existent number of 2,722.

The full addressable marketplace domestically appears to beryllium rather large. Only 7% of radical implicit 14 years aged successful the U.S. are presently Planet Fitness members.

The company's highly inexpensive monthly fees ($15 for the lowest-price option) little the obstruction to introduction for radical who are adjacent somewhat funny successful improving their health. This puts Planet Fitness successful a favorable presumption to payment from a heightened involvement successful wellness.

As mentioned, Planet Fitness presently has much than 2,700 locations successful its full system. This makes it 1 of the largest gym chains successful the U.S.

But lone 10% of those locations are company-owned. The remaining 90% are owned by franchise partners, who enactment up the superior and instrumentality connected the fiscal hazard erstwhile opening a caller Planet Fitness. They wage royalty fees and lend to a nationalist selling fund. In return, the institution provides operational guidance and selling support.