Taking care of our health and overall wellness has clearly become increasingly prioritized in today’s society. For this reason, fitness stocks could offer promising returns riding this flourishing trend. The beauty of the fitness industry is that businesses in this space tend to generate highly recurring cash flows.
Whether it’s the subscription-based model of gyms or the daily consumption of supplements, the fitness industry isn’t cyclical. In fact, I would argue that the industry is almost recession-proof, as economic downturns are unlikely to deter individuals from prioritizing their health and fitness goals. Thanks to this highly appealing characteristic, investing in fitness stocks can prove to be a great choice.
However, the industry is fiercely competitive, so it’s important to go with the top-tier players. I selected the following three fitness stocks with this consideration in mind. Planet Fitness (PLNT) Planet Fitness (NYSE: PLNT ) is one of the largest and fastest growing franchisors and operators of fitness centers globally, based on the number of members and locations.
At the end of March, the company boasted roughly 19.6 million members and 2,599 stores located across the U.S.
and its territories, as well as in Canada, Panama, Mexico and Australia. The company’s low-cost membership model has proven durable, ensuring a predictable and recurring stream of cash flow. The COVID-19 pandemic illustrates this resilience well.
Despite the temporary closures of.