Mid-October, we said, “It’s time to start looking at some of the top New Year Resolution ideas, as we do every year. In the next few weeks, there’s Halloween, when we eat more of the candy we attempt to hand out at the door. Then, there’s Thanksgiving, where we eat until we pass out from too much tryptophan. Then, before you know it, the December holidays are here.
One of those Resolution trade ideas was Planet Fitness (SYM: PLNT).
That’s because, for the last several years, the stock tends to take off around the holidays. We saw it take off in late 2020, in late 2021, in late 2022, and again in 2023. We expect for the same thing to happen again this year.
When we issued that note in October, PLNT traded at around $80 a share. Today, it’s up to $100.86. and could push even higher as a Resolution trade.
The second one was Peloton (PTON), which ran from about $4.80 to a recent high of $10.10.
The company “initiated several new growth levers in both hardware and software that will help the company achieve its profitability metrics for FY25 of $200M to $250M (adjusted EBITDA), as well as obtain positive free cash flow of $75M by next year,” as noted by Seeking Alpha.
The third Resolution pick was Lululemon (SYM: LULU).
“Last trading at $280, we’d like to see LULU retest $300 initially. Helping, company CEO Calvin McDonald just increased his stake in LULU by another 4,000 shares, paying $1.04 million,” we said in October. Today, LULU is up to $396.20 thanks to earnings and buybacks.
In its most recent quarter, LULU revenue came in at $2.40 billion, an increase from the $2.2 billion reported in the third quarter of 2023. Analysts were expecting $2.36 billion. Earnings beat estimates of $2.75 with a print of $2.87. This was also ahead of the $2.53 EPS the company reported in the year-ago period.
LULU also guided fourth quarter revenue to a range of $3.48 billion to $3.51 billion, as compared to estimates of $3.5 billion.
For the full-year, it guided its net revenue guidance to $10.45 billion to $10.49 billion, which is up from prior guidance of $10.38 billion to $10.48 billion. Its full year EPS guidanceof $14.08 to $14.16 was also higher than estimates of $13.95 to $14.15 a share. The company also said it had approved a $1 billion increase to its stock buyback program.
