While the services gyms offer aren’t seasonal in nature, changing customer behaviors and attitudes toward gyms are considerably more seasonal than many hospitality stocks. 

This takes into account New Year’s Resolution trends and desires to get in shape before the peak beach holiday season during the summer months, making the stocks far stronger prospects for growth during the first two quarters of the year. 

So, could investors be in line for steady growth by adding gym stocks to their portfolios in Q4 2024? Evidence is mounting that this could be a watershed year in the midst of a challenging decade for gym firms. 

Out-Innovating Obstacles

The beginning of the 2020s saw gyms struggle on a global scale as the pandemic challenged operating models in the age of social distancing. However, 2024 figures show that many gym stocks have turned a corner from these recent challenges and are embracing digital transformation technology that can help secure more sustainable long-term growth.

The incorporation of virtual reality and wearable technology has helped to introduce gymgoers to a brand-new immersive experience when working out, and these evolutionary measures are paving the way for a more diverse range of operations for gym customers that can help to improve retention. 

Additionally, the emergence of intelligent point-of-sale (POS) systems is helping gyms improve customer visibility and personalization with the help of improved analytical insights to maintain customer loyalty longer into their seasonal growth periods. 

Taking these innovations into account, let’s take a deeper look at some of the brightest gym stocks ahead of their anticipated seasonal growth spurts: 

Planet Fitness Inc 

Highlighting the power of seasonal growth for gym stocks, Planet Fitness (NYSE:PLNT) rallied 52.58% between Q4 2023 and Q2 2024, and the firm’s impressive performance appears set to continue into the new year. 

Planet Fitness can find strength in its fundamentals, and share prices rallied more than 11% off the back of the firm’s Q2 results, where revenue climbed 5.1% on the previous year to $300.9 million, comfortably beating forecasts of $290.18 million in the process. 

Additionally, sales from this period grew to $1.2 billion, with system-wide same-store sales climbing 4.2% in the process. 

After extensive testing in 2023, according to interim CEO Craig Benson, Planet Fitness opted to increase its Classic membership charge by 50% to $15. The move represents the gym’s first price hike in more than 20 years. Benson claimed that the increase was optimal during tests to maintain an increase in revenues with the ‘least impact’ on the rate of joining members. 

Short-term volatility struck the stock in recent months following the announcement of trans-inclusive locker policies at the gym. As a result, more than 40 locations faced bomb threats as the result of aggressive social media opposition. 

Despite this, Planet Fitness has continued to build on its growth in 2024 and should its new pricing structure strike a sweet spot for customers, the gym could be in line for healthy profits moving into the new year. 

Life Time Group Holdings

Another gym stock that’s performed exceptionally well in 2024 is Life Time Group Holdings (NYSE:LTH), a fitness firm that operates more than 150 luxury fitness centers throughout the United States and Canada. 

The stock had rallied more than 60% in the opening eight months of 2024, and the prospect of further growth appears strong with plans for a further 12 new fitness centers underway. 

Crucially, Life Time has performed well thanks to its status as a ‘luxury’ brand, and this has helped the firm to increase the value of its memberships faster than its budget-focused competitors. 

Recent digital transformation initiatives have also added new revenue streams, with customers capable of purchasing digital-only subscriptions, which don’t provide access to physical fitness centers but do offer plenty of online resources and classes for users. 

With insider transactions for Life Time showing that those within the company were net buyers over the past year, it appears that the optimistic tone set by insiders could point to further growth potential in the near future. 

Peloton 

One stock that’s been heavily impacted by the pandemic is the exercise equipment and digital fitness firm Peloton (NASDAQ:PTON), which experienced a spell of exponential growth followed by a severe market collapse. 

Peloton entered Q3 2024 more than 97% adrift from its 2020 all-time highs, but after rallying 40% in August, investors have renewed confidence in the troubled fitness tech stock. 

Positive signs from Peloton’s fiscal fourth-quarter results saw revenue rise to $643.6 million, smashing its $630.5 million in estimates and countering a long-term slide in revenues. Meanwhile, the firm’s subscription business grew steadily by 2.3% year over year to $431 million thanks to price increases. 

The company still has plenty of issues and no clear plan without a permanent CEO in place. However, Peloton’s short-term growth shows that it’s possible for the company to recapture its heavy losses in recent years. Investing remains a risky prospect, but if Peloton can reclaim any more lost ground, it will represent a lucrative prospect for investors. 

Cautious Optimism Ahead

The post-pandemic landscape has paved the way for more volatility among gym stocks, but after years of uncertainty, we’re finally beginning to see signs of sustainable seasonal trends for some of Wall Street’s brightest industry stocks. 

With Q4 set to give way to a new season of New Year’s Resolutions and fitness initiatives, we may see innovative gym stocks embark on sustained rallies in the new year, making them an attractive prospect for a fourth-quarter pickup among investors.