Staying healthy and looking good will never go out of style, and that's why gym stocks may be a great fit for your portfolio. 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.
5 top Gym stocks for 2026
| Name and ticker | Market cap | Current price | Industry |
|---|---|---|---|
| Planet Fitness (NYSE:PLNT) | $5.3 billion | $64.46 | Hotels, Restaurants and Leisure |
| Peloton Interactive (NASDAQ:PTON) | $2.3 billion | $5.26 | Leisure Products |
| Lululemon Athletica Inc. (NASDAQ:LULU) | $17.0 billion | $142.39 | Textiles, Apparel and Luxury Goods |
| Garmin (NYSE:GRMN) | $49.5 billion | $248.09 | Household Durables |
| Life Time Group (NYSE:LTH) | $5.8 billion | $26.29 | Hotels, Restaurants and Leisure |
NYSE: PLNT
Key Data Points
NASDAQ: PTON
Key Data Points
Peloton has 2.6 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. It's seeking to partner with commercial gyms to place its equipment in more locations in 2026.
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.
NASDAQ: LULU
Key Data Points
Sales growth has been slow in the United States, but its international growth is strong, and several key markets, such as China, remain under-penetrated by the Canadian company. International comparable store sales are growing at a double-digit pace, indicating its brand is resonating with foreign consumers.
In the U.S., management is focused on shortening lead times, which should reduce the amount of inventory markdowns. Additionally, it's revamping the retail experience and focusing on innovative products and new segments to expand its addressable market. That could ultimately lead to a strong turnaround in earnings.
NYSE: GRMN
Key Data Points
NYSE: LTH
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 62% in 2025. It sees adjusted net income climbing another 15% in 2026.
How to invest in gym stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- 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.
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.
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