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Soared 25% in Just 1 Year—Is This the Ultimate Growth Stock to Grab With $1,000 Right Now?

Soared 25% in Just 1 Year—Is This the Ultimate Growth Stock to Grab With $1,000 Right Now?

Author:
foolstock
Published:
2025-09-17 22:20:00
5
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Forget traditional blue chips—crypto’s delivering the real alpha.

While Wall Street’s still debating rate cuts, digital assets are printing gains. Up 25% in a single year? That’s not luck—it’s momentum meeting macro.

Why $1,000 matters now

Timing beats size. A grand today positions you ahead of the next leg up—institutional inflows haven’t even peaked. This isn’t speculation; it’s arithmetic.

Look beyond the hype

Real growth stocks don’t need cheerleaders. They’ve got on-chain metrics, adoption curves, and a habit of leaving skeptics behind. Traditional finance’s 'safe' 5% a year? Cute.

Jump—or watch

Opportunity doesn’t ring twice. Especially not in a market that rewards the bold and punishes the hesitant. Your move.

People running on treadmills at a gym.

Image source: Getty Images.

Flexing its muscles in the fitness industry

When looking at the fitness industry, a lot of attention has gone toin recent years. But investors shouldn't forget about(PLNT -2.30%), whose shares have beaten the market in the past year, as mentioned.

After the onset of the COVID-19 pandemic more than five and a half years ago, the company hit a rough patch, as its stores were closed temporarily to stop the spread of the virus. Since that brief, but difficult, moment, the business has been doing well.

The momentum has continued into this year. During the second quarter (ended June 30), Planet Fitness' revenue increased 13.3% year over year to $340.9 million. It now has 20.8 million members, up from 14.4 million at the end of 2019, just prior to the health crisis. Opening new stores, 23 in Q2, is a key growth driver. A robust same-store sales increase of 8.2% also boosted the top line.

There are now 2,762 Planet Fitness studios in total, with 2,603 in the U.S. The leadership team believes there is substantial room to keep expanding. They've set a target of reaching 5,000 stores domestically one day.

There appears to be a huge untapped opportunity. According to the business, only 7% of the U.S. population over the age of 14 was a member of Planet Fitness at the end of last year. It helps that the monthly fees are so low ($15 for the cheapest option and $25 for the premium offering) because this reduces the friction to get people to sign up.

"As consumers increasingly prioritize health and well-being, Planet Fitness is well positioned to meet this demand with our judgement-free, high-quality, and affordable fitness experience." CEO Colleen Keating, who took the top job in June 2024, said in the press release.

Benefits of franchising

Planet Fitness reported operating income of $102 million in Q2, up 17.2% year over year. That translates to a stellar margin of 30%. It helps that the business operates a franchise model.

Of the 2,762 locations in the Planet Fitness system, only 10% are owned by the company. The remaining 90% are owned by franchise partners. These entrepreneurs invest their own money, taking on the risk associated with a new venture. A portion of sales goes to the parent company in the FORM of royalty fees, for instance. Planet Fitness provides ongoing operational support.

This could explain why the business has historically been extremely profitable. Growing on the backs of other people's capital creates an asset-light model that can scale up well. It makes sense why the consensus view on Wall Street is that earnings per share will increase by 57% between 2024 and 2027, faster than the expected revenue gain.

Planet Fitness trades at a steep valuation

Investors might view this as a solid company. There are valid reasons to think this way. But I wouldn't go so far as to say this is the ultimate stock to buy with $1,000. There are other businesses that might fall into this category.

It's also worth examining if shares are a good value today. The stock trades for a price-to-earnings ratio of 45.3. This in no way presents a bargain opportunity. The best thing to do is wait for a pullback. But I can understand why bullish supporters who want immediate exposure to the fitness industry WOULD act differently.

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