Portfolio Fitness to Close Out the Year (PTON, PLNT, BTDG, NLS)

The fitness space has been outperforming expectations as the pandemic curtails in-person activities, crushing many industries, including gyms and fitness facilities. But the need to access these services is trumping the barriers so far, with many of these stocks faring far better than you might have assumed given the circumstances.

However, the most important factor to be considered at this point – as we approach the widespread distribution of a vaccine – is the notion of “pent-up demand”, which promises to grant stocks in the space an explosive jump in growth as society comes back out in force during the first half of 2021.

With that in mind, we take a look here at some of the most interesting and active names in the space, including: Peloton Interactive Inc (NASDAQ:PTON), Planet Fitness Inc (NYSE:PLNT), B2Digital Inc (OTCMKTS:BTDG), and Nautilus Inc (NYSE:NLS).


Peloton Interactive Inc (NASDAQ:PTON) frames itself as “the leading interactive fitness platform in the world with a loyal community of more than 3.6 million Members”. The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient, while fostering social connections that encourage its Members to be the best versions of themselves.

An innovator at the nexus of fitness, technology, and media, Peloton has reinvented the fitness industry by developing a first-of-its-kind subscription platform that seamlessly combines the best equipment, proprietary networked software, and world-class streaming digital fitness and wellness content, creating a product that its Members love. The brand’s immersive content is accessible through the Peloton Bike, Peloton Bike+, Peloton Tread+, and Peloton App, which allows access to a full slate of fitness classes across disciplines, on any iOS or Android device, Apple TV, Fire TV, Roku TVs, and Chromecast and Android TV.

Peloton Interactive Inc (NASDAQ:PTON) most recently announced that it is teaming up with Grammy Award-winning global entertainer and entrepreneur, Beyoncé, in a broad, multi-year partnership rooted in the celebration of music — a central component of the Peloton class experience — and pro-social initiatives.

According to the release, the launch of the collaboration with Beyoncé, the most requested artist by Peloton’s global community of more than 3.6 million members, is commemorating Homecoming season, an annual fall celebration for students at Historically Black Colleges and Universities (HBCUs) that honors tradition and legacy. While most of this year’s Homecoming festivities shifted to virtual celebrations due to the global pandemic, Beyoncé and Peloton worked closely to create a series of themed workout experiences to help extend Homecoming to Peloton members via classes across multiple fitness categories, including indoor cycling, running, strength, bootcamp, yoga and meditation.

And the stock has been acting well over recent days, up something like 9% in that time.

Peloton Interactive Inc (NASDAQ:PTON) generated sales of $757.9M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 24.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2B against $1.1B).


Planet Fitness Inc (NYSE:PLNT) bills itself as one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. As of September 30, 2020, Planet Fitness had more than 14.1 million members and 2,086 stores in 50 states, the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico and Australia.

The Company’s mission is to enhance people’s lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. More than 95% of Planet Fitness stores are owned and operated by independent business men and women.

Planet Fitness Inc (NYSE:PLNT) most recently announced that it will again return as the presenting sponsor of Times Square’s New Year’s Eve celebration for the sixth consecutive year, in partnership with Times Square Alliance and Countdown Entertainment.

According to the release, Planet Fitness will be featured on “Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest 2021” on Thursday, Dec. 31, beginning at 8:00 p.m. EST on ABC – with a presence in New York and Los Angeles – as well as on the Times Square’s 2021 webcast throughout the night.

And the stock has been acting well over recent days, up something like 3% in that time.

Planet Fitness Inc (NYSE:PLNT) generated sales of $105.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 161.9% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($501.6M against $120.4M).


B2Digital Inc (OTCMKTS:BTDG) is an interesting addition to this list given its more speculative current position and its strong ties to the MMA space as the “development league for Mixed Martial Arts”.

However, as the company has noted, its roll-up strategy in the fitness facility market is the real breadwinner. That puts it squarely in the gym space as a strong contender with enough bigtime potential to put it on the radar for investors interested in the space.

B2Digital Inc (OTCMKTS:BTDG) recently put out an update for its shareholders on the company’s outlook and the accelerating organic and strategic growth underway in its Gym segment, as well as its performance related to this strategy during the three months ended September 30, 2020, and its expectations for related performance during the current quarter ending December 31, 2020, and beyond.

“Based on the strategy we have in place – and the assumption that we don’t see major new pandemic-related shutdowns that impact the business – we are targeting $4-5 million on the topline over the rolling forward next twelve months,” commented Greg P. Bell, CEO of B2Digital. “This is based on the growth we are seeing now and the continued successful implementation of the company’s roll-up strategy in our Fitness Facility segment, which is the real breadwinner in our broad vision. We are already on pace to more than double the topline on a sequential quarterly basis into year-end.”

According to the release, BTDG saw a 76% jump in Gym revenues on a sequential quarterly basis in its latest quarter. In addition, the company increased overall revenues across segments by 126%, Q/Q. The company also noted that it sees that doubling again this quarter. In addition, the company plans to continue its roll-up strategy in the fitness facility market over the coming twelve months. The company’s objective is to acquire one to two new gym facilities every quarter with our goal to increase these acquisitions as the spread of Covid-19 decreases nationally. Thus far, each acquisition the Company makes in the fitness facility space is believed to represent at least $400K per year in rolling forward next twelve-month revenues based on past historical performance.

The big picture point here is that this strategic process could lead to truly massive year/year growth. As noted, “At this pace, given current metrics and assumptions, including no major return of mandated pandemic-related shutdowns relevant to its current fitness facilities, the Fitness Facility segment could achieve just shy of $4 million in revenues over the rolling forward next twelve months if the company’s acquisition objectives are executed as planned. Paired with a conservative assumption of $75K – $100K in monthly revenues from its live MMA events, encompassing 3 planned fights a month at current revenue achievement rates per fight, the Company believes it has the potential to achieve total revenues of at least $4 to $5 million over the rolling forward twelve months.”

B2Digital Inc (OTCMKTS:BTDG) pulled in sales strong sales in its last reported quarterly financials, with top line growth of 126%, and an estimate for that to double again this quarter and then accelerate from there as it stacks up a widening footprint in the gym space, which represents a bigger and bigger channel to the bottom line for its shareholders over the coming 12 months.


Nautilus Inc (NYSE:NLS) bills itself as a global leader in innovative home fitness solutions. The company’s diverse brand portfolio includes Bowflex®, Nautilus®, Schwinn®, and a broad selection of exercise bikes, cardio equipment, strength training products, as well as the JRNY® fitness service.

Nautilus, Inc. empowers healthier living through individualized connected fitness experiences. The company sells its products through direct and retail channels. Nautilus, Inc. uses the investor relations page of its website to make information available to its investors and the market.

Nautilus Inc (NYSE:NLS) most recently announced the expansion of its indoor cycling bike series with the Bowflex C7 connected bike. The bike, available at select Dick’s Sporting Goods, combines quality design with digital connectivity for a personalized, immersive workout.

“Our sights are set on being the leader in connected home fitness by providing the best-in-class user experience that the JRNY fitness service delivers,” said Jim Barr, CEO of Nautilus, Inc. “A recent survey found that entertainment is a part of most fitness consumers’ workouts with 93% citing at least one form of entertainment they engage in while working out. The addition of the JRNY fitness service to the Bowflex C7 delivers what consumers are requesting.”

If you’re long this stock, then you’re liking how the stock has responded to the announcement. NLS shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume.

Nautilus Inc (NYSE:NLS) managed to rope in revenues totaling $155.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 151.8%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($72.3M against $117.8M, respectively).



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