3 Promising Fitness Stocks to Power Up Your Portfolio

An increasing awareness of the health benefits of staying active has catapulted fitness stocks into the spotlight. In the era of technological advancements and evolving consumer preferences, fitness companies are innovating to stay ahead of the curve. This spans all areas of the industry from wearable technology that tracks health metrics to fitness apparel for peak performance. These innovations are not happening in isolation and are part of a broader growth trend within the industry. Data shows that the sports and fitness clothing market will grow at a compound annual growth rate (CAGR) of 7.2% between 2024 and 2029. And, the fitness tracker market will grow at a 6.60% CAGR for the same period. This growth will be amplified by changing perceptions toward fitness. A survey conducted by McKinsey shows that around 50% of gymgoers in the U.S. said that fitness is a core part of their identity while 56% of Gen Z consumers called it a “very high priority.” In other words, fitness apparel and technology are poised for massive growth in the coming years and investing in these companies can generate outsized returns in the long haul. On that note, let’s make a case for adding three fitness stocks to your portfolio. Garmin (GRMN) Source: Karolis Kavolelis / Shutterstock.comWearable technology, once a fitness industry novelty, has become the norm. And while the industry is certainly crowded these days, Garmin (NYSE:GRMN) stands out as a leader. The fitness company creates GPS navigation and wearable technology for various industries including aviation, marine, automotive and fitness. As an early mover in the space, Garmin established a strong brand presence over the years and has become the go-to option for runners and outdoor enthusiasts. The dominance of the company was fairly evident in its recent earnings report. Garmin crushed Q2 of fiscal year 2024 earnings at $1.58 per share over the analysts’ estimates of $1.47 per share. Revenue for the period grew 14% while operating income rose 20%. Building on its impressive results, Garmin raised full-year revenue guidance to $5.95 billion. In the competitive world of fitness technology, Garmin’s financials are a testament to its strong market position. Investors looking for a high-reward play will find fitness stocks like GRMN a compelling buy. Foot Locker (FL) Source: shutterstock.com/philip openshawInvesting in value fitness stocks is a great way to capitalize on the potential gains and this is just what Foot Locker (NYSE:FL) offers. The global fitness giant with 2,500 stores has had a turbulent year. Shares of the company are down 13% year-to-date (YTD) but the company shows promising signs of a turnaround. Looking back to last quarter’s earnings, Foot Locker’s results were mixed. For the first quarter, earnings came in at 22 cents per share over the expected 12 cents per share. Revenue was recorded at $1.8 billion, in line with expectations. However, net income dropped to $8 million versus $36 million the prior year. The decline was the result of looming inflation concerns that put a damper on its sales. But despite the decline, Foot Locker remains confident in its ability to capitalize on growth opportunities and achieve targets. A major part of its turnaround strategy involves revamping its stores to draw in more customers while encouraging brands to feature their best products on-site. Foot Locker’s turnaround is imminent making it a great value play for long-term returns. On Holdings (ONON) Source: It for you / Shutterstock.comOn Holdings’ (NYSE:ONON) meteoric rise in the last couple of years is a testament to its innovative product and clever marketing. The company places a strong emphasis on performance utilizing CloudTec technology to enhance the performance of its shoes. Additionally, the unique color palette of the shoe has made it a fashion statement in the athleisure community. Both have given On Holdings a competitive edge in the market. Its strong market position was fairly evident in its recent upbeat earnings report. Earnings doubled to 36 cents per share versus 17 cents in the prior year. Revenue grew 20% for the quarter, largely fueled by the 48.7% year-over-year increase in direct-to-consumer sales. Looking ahead, the company anticipates greater growth with a 30% increase in net sales for the year. ONON unique shoes put the company in a league of its own, making it one of the most compelling fitness stocks on the market right now. On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comn Publishing Guidelines. On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. Divya has a background in finance and accounting and has worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics including stocks, crypto, blockchain and global policy.Consumer Discretionary, Retail