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Why Nautilus Stock Soared Today

By Rich Duprey – Updated Jun 17, 2020 at 4:25PM

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The maker of home fitness equipment has benefited from pandemic lockdowns.

What happened

Shares of home fitness equipment maker Nautilus (NLS 1.80%) jumped 8.5% on Wednesday, as it introduced a new home gym system.

So what

It's not apparent the new home fitness equipment was the catalyst for the jump in the stock's price, since Nautilus shares have been on a tear since the pandemic began, rocketing nearly 600% higher. But a check of the company's Bowflex website showed the new system was already sold out.

Man curling dumbbells

Image source: Nautilus.

Now what

Home fitness has been a hot area for investors during the coronavirus pandemic as they have also bid up the shares of Peloton Interactive and athleisure-wear maker lululemon athletica.

None has done better than Nautilus, though it also had been knocked down to virtual penny-stock status, having fallen as low as $1.20 per share. Yet with the realization that chains like Gold's Gym and Planet Fitness would be closed for some time, it made sense to bet on stocks that helped consumers stay fit during the lockdown.

Even though gyms are now reopening, consumers may not flock back right away. Nautilus points to an April survey by Statista showing as many as 41% of respondents don't know when they will go back to the gym, with 21% saying it could be as long as six months.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lululemon Athletica, Peloton Interactive, and Planet Fitness. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Nautilus, Inc. Stock Quote
Nautilus, Inc.
$1.70 (1.80%) $0.03
Lululemon Athletica Inc. Stock Quote
Lululemon Athletica Inc.
$299.19 (1.54%) $4.53
Planet Fitness, Inc. Stock Quote
Planet Fitness, Inc.
$57.69 (1.98%) $1.12
Peloton Interactive, Inc. Stock Quote
Peloton Interactive, Inc.
$8.20 (-0.24%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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