3 Top Fitness Stocks To Watch Before November 2020
October 21, 2020 at 08:32 AM EDT
Do You Have These Top Fitness Stocks On Your Watchlist This Month?
While traditional retail stocks are down, fitness retailers are performing very well this year within the stock market. This includes companies that sell fitness equipment, fitness clothing, and more. The rise of this niche in the fitness market is due to gyms being closed as a result of the coronavirus. The coronavirus pandemic has forced people who want to work out, to do so at home. Even in places where gyms have now reopened, many do not want to take the risk of going.
So it is no surprise that these companies are seeing benefit from this. For example, Fitbit Inc. (FIT Stock Report) has seen positive sales benefits from the increase of home workouts, while Planet Fitness (PLNT Stock Report) has been hurt badly. It is unknown when gyms will be able to open, or if the general consumer will even feel comfortable attending when they do. That is why the rise of top fitness stocks in 2020 has been a huge deal for investors. So now let’s take a look at three fitness stocks that have been trending throughout the year as this sector continues to grow.
First up on this list is Lululemon Athletica Inc. (LULU Stock Report) which has been performing very well this year. Lululemon is a fitness company with a large focus on retail and e-commerce. The company sells athletic apparel products such as performance pants, shirts, and accessories for working out as well. The company has 506 stores worldwide, and a large e-commerce platform. It has grown to be a household name for many and has increased its sales numbers throughout the year. Let’s look at some recent advancements that this fitness stock has been able to make.
On September 8th, Lululemon released its second-quarter earnings of fiscal 2020. During its first quarter, all of its stores were open. But as of August 2nd, 492 of its 506 stores were open once again. The company’s net revenue increased by 2% to $902.9 million, 3% on a constant dollar basis. Its retail store net revenue decreased by 51% due to the closures, but it’s direct to consumer net revenue increased by 155%. Its direct to consumer net revenue was 61.4% of the company’s total net revenue. The rest of the year is still uncertain for the company.
Calvin McDonald, the CEO said, “We are cautiously optimistic with regard to the second half of the year as we continue to navigate the uncertain environment.” Essentially saying that while things look positive for Lululemon, the future is unsure. So despite the company’s rocky start this year, it has managed to perform well in its e-commerce sales. LULU stock price has gone up more than 41% in 2020. That is why it has made this list of fitness stocks to watch.Top Fitness Stocks To Buy [Or Sell] Before November 2020: Nautilus Inc.
Now let’s talk about another fitness stock that has been trending in 2020, Nautilus Inc. (NLS Stock Report). Nautilus has also been able to see the benefits of offering home equipment in the current environment. This is a fitness company that sells workout equipment under the brand’s Nautilus, Bowflex, and more. Nautilus has reported a 94% increase in second-quarter sales in 2020. In addition to this, its sales numbers were $114.2 million in the second quarter vs. $59 million the previous year. The company also actively had $34.2 million in backorders at the end of that quarter.
So it is no surprise that NLS stock price drastically increased along with its sales and revenue numbers this year. NLS stock has gone up more than 1200% in 2020, and that is not a typo. This type of performance is extremely great for investors of the company.
In the last 5 trading days as of October 20th, NLS stock price has gone up more than 18%. 6 days ago, the company announced that it sold its Octane Fitness business to TRUE Fitness Technology Inc. Now we just have to wait until Nautilus releases its next quarterly results, so we can see what will come of it. This will likely have an effect, whether positive or negative, on NLS stock price. So that is why NLS stock is on this list of fitness stocks to watch.Top Fitness Stocks To Buy [Or Sell] Before November 2020: Peloton Interactive Inc.
The final company on this list of fitness stocks to buy or sell is Peloton Interactive Inc. (PTON Stock Report). Among all of the fitness stocks in 2020, Peloton is one of the biggest gainers. Peloton is a fitness company that sells a stationary bicycle with a screen for streaming classes. This is seemingly the perfect product for those who want to take classes and stay fit, without taking the risks of going to the gym or in-person classes. For this reason, this fitness company has been exploding with sales throughout 2020. It is constantly reaching new streaming record high viewer counts as well.
How does its service work though? Unlike traditional fitness companies where the only source of profit from the customer is the equipment itself, Peloton is different. The peloton makes the sale of the fitness equipment and then charges a monthly subscription fee for its classes. You can use the equipment without this, but most purchase the Peloton bike specifically for this feature. With the massive increase in sales and revenue, it is not a surprise to investors that PTON stock price has gone up as well. PTON stock was at $30 a share on average when 2020 started.
Now as of October 20th, 2020, PTON stock price has gone up to $131 a share on average. That is a total increase of about 336% for PTON stock. Now we will see how Peloton performs in sales during this upcoming holiday season. That is why Peloton and PTON stock have made this list of fitness stocks to buy or sell in October.