Staying healthy and looking good will never go out of style. Whether you're trying to improve your cardiovascular health or want to get stronger, it pays to work out at home or hit the gym. While gym memberships and home exercise equipment cost money, you might be able to recoup that expense by investing in the most profitable gym stocks.
Best fitness stocks in 2026
Here are five of the best gym companies to watch this year:
NYSE: PLNT
Key Data Points
Most Planet Fitness gyms are located in the U.S. Management has a long-term goal of reaching 5,000 locations in the U.S. alone, and the company has plenty of opportunity to expand internationally.
Most Planet Fitness locations are franchises, but the company also directly operates more than 280 facilities. The franchise business model results in a very high operating margin with low capital intensity.
Planet Fitness is well positioned to capture market share after many of its competitors closed their doors permanently due to the COVID-19 pandemic. Strong results over the last two years have led to reacceleration in club openings and expanded operating margin.
2. Peloton
Peloton (PTON -0.69%) is known for its connected stationary bikes and other home workout equipment. Although users must purchase Peloton equipment, the company earns most of its revenue from the subscriptions required to fully utilize its bikes and treadmills.
NASDAQ: PTON
Key Data Points
Peloton has 2.7 million subscribers who pay $50 per month for a connected fitness subscription. Another 500,000 people pay $16 or $29 per month for a digital-only subscription. Digital subscriptions are immensely profitable for Peloton, which has a gross margin of almost 50%.
The home gym company thrived during the pandemic since most people were confined to their homes. But as the pandemic subsided and gyms reopened, the company has struggled to hold on to subscribers, especially for its digital-only product.
The stock has sold off significantly since the height of the pandemic, as the tailwind turned into a massive headwind. Peloton grew its operating expenses as if the shift to home workouts were a permanent phenomenon. It paid for that in subsequent years. Management is now focused on improving profitability and increasing value for existing subscribers.
3. Lululemon Athletica
Lululemon Athletica (LULU -4.19%) is a leading apparel retailer, specializing in yoga pants and other athletic wear. Its premium brand and the comfort of its clothes led to strong sales growth over the last few years as athleisure has become a mainstream style choice.
NASDAQ: LULU
Key Data Points
Management once expected to double its 2021 sales by 2026, with a goal of $13 billion in revenue, which may be tough to reach since it expects sales of $11 billion this year. Sales growth has been slower in the United States, but its international growth is strong, and several key markets, such as China, remain under-penetrated by the Canadian company.
The company also moved into the connected fitness space with its 2020 acquisition of Mirror, which it rebranded to Lululemon Studio. The move didn't work out. It discontinued the Mirror device and partnered with Peloton to service its subscription home workout programs.
4. Garmin
Garmin (NASDAQ:GRMN) started by manufacturing global positioning system (GPS) navigation devices. Today, the company generates the bulk of its revenue from personal fitness devices such as smartwatches, fitness trackers, cycling power meters, and heart rate monitors. Consumer demand for fitness trackers continues to grow as more people look for ways to enhance their health.
NYSE: GRMN
Key Data Points
As a result, it's been able to produce strong revenue growth through increased membership pricing and additional service sales such as personal training. As a luxury brand, Life Time has the opportunity to increase the value of its memberships more than low-cost gyms, such as Planet Fitness, that cater to budget-conscious consumers.
Its recent moves have resulted in very strong member retention while still attracting new members. Not only does that produce nice revenue growth, but it also provides strong operating margin expansion. The company saw net income increase 55% in 2024, and management's preliminary earnings results showed a 61% increase in income for 2025.
Key factors to consider when investing in gym stocks
The gym and fitness industry consists of two types of companies: those that provide expensive, high-end products and services, and those that offer low-end products and services. Companies trying to offer something in the middle of the road struggle to find a customer base. Both strategies can work, but you need to know which strategy the company you're investing in is taking.
Key factors for gym stocks in particular include how many locations they have, how quickly they're opening new locations, member growth, and member retention rates. You'll want to see healthy numbers across the board, and be sure to follow management's commentary on how they plan to maintain or improve them.
How to invest in gym stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Benefits and risks of investing in gym stocks
Benefits:
- Gym and fitness stocks capitalize on growing health consciousness among consumers. People are highly willing to pay for positive health outcomes.
- Most gyms and many fitness products receive recurring revenue, making their top-line growth highly predictable.
Risks:
- Churn rates: Some gyms and health products can experience very high churn rates, requiring them to continually fill the bucket. A sudden drop in gross additions can cause a shortfall in key metrics, leading to a drop in the stock price.
- Capital intensity: If a gym owner builds its own gyms (as opposed to franchising), it has to invest a lot of capital up front to open a new location, with some uncertainty about how well it can attract new members.
Related investing topics
Are gym stocks right for your portfolio?
Gyms, connected fitness, and digital subscriptions all generate recurring revenue, which can lead to more predictable revenue growth. Subscriptions can also provide a strong revenue base for companies to sell equipment or apparel. Focusing on investing in companies with business models that generate plenty of cash is likely the most profitable approach.
The performance of gym stocks can vary seasonally since many people focus more on their health around the new year. But despite that potential price volatility, adding a top gym stock to your portfolio may be just the right fit for you. At the very least, buying stock in a fitness company may make you feel better about paying for an unused gym membership or a Peloton that you hang clothes on.
FAQ
Gym stocks FAQ
About the Author
Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Garmin, Lululemon Athletica Inc., Peloton Interactive, and Planet Fitness. The Motley Fool has a disclosure policy.
