This Growth Stock Is Up 42% in the Past Year. Should You Buy It With $1,000 Right Now?
In the last year, the S&P 500 has climbed 17%. That's a better-than-average gain, historically. But some businesses have fared much better, and investors should take notice of them. In particular, one consumer-facing company has well outperformed the broader index: Its shares have soared by 42% just in the past 12 months (as of Feb. 25). Should you buy this growth stock with $1,000 right now, which would give you about 11 shares at the current price?The growth stock in question is Planet Fitness (NYSE: PLNT). Healthy financial results for the gym chain in recent quarters have propelled shares higher, but they're now down 17% from their late January peak, as investors apparently weren't pleased with the company's guidance in its latest report, which it released Tuesday.For the fourth quarter, the business reported $340.5 million in revenue. That was up 19.4% year over year, showing how Planet Fitness has successfully bounced back from the early phases of the pandemic, when all of its locations were temporarily closed. That top-line gain was fueled by the opening of 86 net new locations. Same-store sales increased by 5.5%.Continue reading
In the last year, the S&P 500 has climbed 17%. That's a better-than-average gain, historically. But some businesses have fared much better, and investors should take notice of them. In particular, one consumer-facing company has well outperformed the broader index: Its shares have soared by 42% just in the past 12 months (as of Feb. 25). Should you buy this growth stock with $1,000 right now, which would give you about 11 shares at the current price?
The growth stock in question is Planet Fitness (NYSE: PLNT). Healthy financial results for the gym chain in recent quarters have propelled shares higher, but they're now down 17% from their late January peak, as investors apparently weren't pleased with the company's guidance in its latest report, which it released Tuesday.
For the fourth quarter, the business reported $340.5 million in revenue. That was up 19.4% year over year, showing how Planet Fitness has successfully bounced back from the early phases of the pandemic, when all of its locations were temporarily closed. That top-line gain was fueled by the opening of 86 net new locations. Same-store sales increased by 5.5%.
