<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Planet Fitness's rapid growth rate is on track for a dramatic slowdown.</li><li>Its now more attractive valuation could induce investors to take a closer look at the stock.</li><li>10 stocks we like better than Planet Fitness ›</li></ul>The current earnings season is not over yet, but Planet Fitness (NYSE: PLNT) is on track to become one of the more notable stocks of this period.The gym stock -- which was already down significantly for the year -- lost almost one-third of its value following its first quarter earnings release Thursday. Cuts to its sales and earnings guidance, as well as management's decision not to increase the price of its premium Black Card membership, appeared to spook investors. The stock is now down by about 58% year to date.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »That may leave investors wondering what to do. Should they buy Planet Fitness or stay away from what has suddenly become an even more volatile stock?<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTEyMi9yaWRpbmctYW4tZXhlcmNpc2UtYmlrZS5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTEyMi9yaWRpbmctYW4tZXhlcmNpc2UtYmlrZS5qcGcmdz03MDA"/>Image source: Getty Images. <h2>What happened</h2>At first glance, Planet Fitness's earnings report appeared solid. Revenue was up 22% year over year to $337 million. Also, even with a 101% increase in the cost of revenue amid higher marketing spending and operational challenges, its net income surged 23% higher to $52 million.Still, the cost of revenue quickly became a concern. On top of the decision to hold the cost of the Black Card membership steady, new member sign-ups fell by 36% year over year, and the company increased marketing spending.Consequently, it adjusted its expected 2026 revenue growth to 7%, down from a previous forecast of 9%. It also forecast a 2% net income decrease, in contrast to its previous guidance for a 4% to 5% increase.<h2>The new state of Planet Fitness stock</h2>Nonetheless, the plunge in the stock price looks like an overreaction, and not just because it's at its lowest levels since 2020. The trailing P/E ratio is now at 17, and its forward P/E is down to 13.This sort of stock behavior seems to be pricing in the premise of a permanent slowdown in Planet Fitness' business, and it is too early to tell whether that is what's happening.Admittedly, with the stock being hammered this year, CEO Colleen Keating's leadership may face a test. Also, Planet Fitness has traditionally been the gym of the budget-conscious consumer, a factor that could make it harder for the company to raise prices.Still, the company expects between 180 and 190 new club openings, a significant addition for a company with 2,909 locations as of March 31. Also, another 150 to 160 franchisee-owned locations are expected to buy new equipment, likely boosting its competitiveness.These do not look like the actions of a company that's permanently doomed to grow earnings at 2% per year. Additionally, the Black Card increase the company delayed will probably go through at some point, which should help the stock recover.<h2>Moving forward with Planet Fitness stock</h2>Given the state of Planet Fitness, the stock looks to be a buy at these levels.True, the upcoming revenue slowdown and earnings decline are causes for concern. Also, management's reluctance to increase the cost of Black Card membership is not going to bolster investors' confidence in the stock.However, its forward P/E ratio of 13 should limit the stock's downside risk from here. If the sentiment around the company proves to have been overly pessimistic, Planet Fitness stock will probably recover.<h2>Should you buy stock in Planet Fitness right now?</h2> Before you buy stock in Planet Fitness, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Planet Fitness wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 10, 2026. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Fitness. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

PLNT

Planet Fitness's stock plummeted nearly 58% year-to-date after a disappointing earnings report, which included cuts to sales and earnings guidance. Despite a 22% revenue increase to $337 million, concerns arose from a 36% drop in new member sign-ups and increased marketing costs. The company adjusted its 2026 revenue growth forecast down to 7%. Analysts suggest the stock may be undervalued with a forward P/E ratio of 13, indicating potential for recovery. However, management's decision to maintain Black Card membership pricing raises investor concerns. Overall, the stock may be a buy at current levels, but caution is advised.

Planet Fitness Stock Plunged Following Earnings. Should You Buy?