Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fitness club operator Life Time Fitness (NYSE:LTM) has received the dreaded one-star ranking. Our data has shown that one-star stocks woefully lag the market average; conversely, five-star stocks outperform the S&P 500 by a significant margin.

With that in mind, let's take a closer look at Life Time Fitness' business and see what CAPS investors are saying about the stock right now.

Life Time Fitness facts

Headquarters (Founded)

Chanhassen, Minnesota (1990)

Market Cap

$575.82 million


Leisure Facilities

TTM Revenue

$746.77 million


Founder/CEO Bahram Akradi

COO Michael Gerend

Total Debt/Equity



Town Sports International (NASDAQ:CLUB),

Bally Total Fitness

CAPS members bearish on LTM also bearish on

Centex (NYSE:CTX),

Toll Brothers (NYSE:TOL)

CAPS members bullish on LTM also bullish on


Altria (NYSE:MO),

Goldman Sachs (NYSE:GS)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 178 of the 314 members who have rated Life Time Fitness -- some 57% -- believe the stock will underperform the S&P 500 going forward. These Fools include CAPS All-Star dexion10 and CashonDelivery.

Last month, dexion10 wrote that Life Time Fitness "is similar to Bally's Total Fitness, a gym that came back from bankruptcy and then filed for bankruptcy again in just 14 months. Gym memberships will be a casualty of the recession and [Life Time] runs high end gyms."

In a pitch from two weeks later, CashonDelivery, after taking the lead from stock whistleblower Citron Research, shared that same bearish stance:

After looking into the company, I agree it's terrible. They're generating most cash flow from sale-leaseback transactions, but they only have so many properties and I don't see the real estate market for huge fitness centers improving greatly, especially if the purchasing parties have concerns about the long-term viability of their new lease tenant. Coupled with declining utilization by members, this company is the walking dead.

What do you think about Life Time Fitness, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Rule Breakers pick. The Fool's disclosure policy always gets a perfect score.