Planet Fitness (PLNT) has been explosive as we head into the holidays.

But that’s no surprise.

For the last several years, the stock tends to take off around the holidays.  It’s even starting to do so again now after plummeting. We saw it take off in late 2020, in late 2021, and again in late 2022.  And we just saw it happen again. In fact, since our first note on PLNT, the stock ran from about $48.23 on October 2 to its current price of $65.51.

Not only did the holidays help, but so did earnings and guidance.

As noted by Seeking Alpha:

PLNT reported revenue rose 13.6% year-over-year to $277.6M in Q3. System-wide sales were up 8.4% during the quarter. Franchise segment revenue increased 21.6% to $98.2M. Corporate-owned stores segment revenue increased 11.8% to $113.2M. Adjusted EBITDA of $51.8M was up from the $38.2M generated a year ago. Net income was $41.3M vs/ $30.7M a year ago. EPS came in at $0.46 vs. $0.43 consensus.

Looking ahead, PLNT guided for full-year revenue growth of about +14% vs. +12% prior outlook. The company also expects full-year adjusted EBITDA growth of about 18% vs. +17% prior outlook. Planet Fitness now expects new equipment placements of between approximately 130 and 140 in franchisee-owned locations, and system-wide new store openings of between approximately 150 and 160 locations. That’s all great news. 

At the same time, we have to consider PLNT is also a short opportunity after the holidays. In fact, if you look at PLNT going back five years, you can see that many times PLNT will drop in the weeks following the holidays from overbought conditions.