I can tell you first hand that staying @ home = eating @ home ALL THE TIME!

Yes, easy access to food all day does lead to putting on a bit more weight. So like many I am trying to shake off the excess weight by staying more fit. And as I look around in the media I see that I am not alone in following this trend.

That is why it makes sense to turn the spotlight on the fitness companies that do best in when folks seek to work out more often on their own. These 4 stocks are the standouts: Fitbit, Inc (FIT - Get Rating), GoPro (GPRO), Nike (NKE - Get Rating) and Peloton (PTON - Get Rating). Let’s find out why…

Fitbit, Inc (FIT - Get Rating)

The beginning of the Stay @ Home directives may have felt a little bit like a quasi-vacation. No more getting up for work, grueling commutes, or client visits. Now, that we’ve all had the chance to settle in a bit, many people are looking for ways to make the most out of these quieter and slower-paced days. That explains why Fitbit (FIT) is enjoying an increase in demand due to increased use by folks still looking to maintain some level of activity throughout their days. Health tracking is likely to become more of a part of consumers’ everyday lives, even as we move past this period of mass quarantines. And FIT really is the most dedicated player in the space.

Our POWR Rating model shows FIT as “B” rated for Buy. That is because this is one of the few stocks that has actually landing in positive territory this year while most other stocks are in bear market territory. Going back 6 months we see that FIT shares are actually up 53%. The momentum is there for good reason and not likely to go away any time soon.

Peloton (PTON - Get Rating)

Peleton is the hot name in home fitness. And likely PTON only looks better as more folks are forced to work out at home which is their specialty.

I have to confess to being wooed in by Peleton as we bought a bike last year. And the thing that pulled me in was the countless recommendations from close friends who believed it was the best piece of home work out equipment. That is true. But what is even more impressive to me about PTON is the line up of non-cycle classes that I can stream online for core workouts, weights, yoga and more. I actually stream that more often than riding the bike itself.

Back to the investment picture for PTON, even though it is up this year, analysts are still calling for more. The average target on Wall Street is just shy of $38. But in the past week 3 fresh buy ratings came out on Peleton with targets ranging from $40 to $43. PTON is a fitness craze that is not going away and likely can ride it to the bank. (sorry for the bad cycling pun).

GoPro (GPRO)

Like many hot IPOs, GoPro got a little too big for its britches as the reality of their growth did not meet up with the stratospheric projections. Since GPRO shares have plummeted back down to earth we see a much more interesting growth and value story emerging.

That is even true in the new Coronavirus economy as people are yearning to be outside…just not nearby any other humans. The solution is to consider more outdoor pursuits such as camping, fishing, mountain biking, and the like. It’s going to be a while before anyone’s completely ready to head back into crowded areas. In other words, a lot of families may be headed to State and National Parks rather than amusement parks for their annual vacation. That is a landscape that GPRO can thrive in.

Analysts are forecasting around 40% upside for GRPO with a price target of $3.55 up from the current level of $2.54. I definitely think it’s one to watch, and worth a closer look at this time.

Nike (NKE - Get Rating)

Everyone seems to love Nike, and with many consumers becoming more fitness and health-conscious, it’s easy to see NKE as the safe play. In addition to their sportswear, NKE also offers a good amount of outdoor gear, and I’m thinking that activities that lend themselves well to physical distancing are going to continue to perform well in the age of coronavirus.

Analysts over at TipRanks agree with this assessment and show NKE as an appealing Buy target. The average projection is for shares to rise to $96, but there are some 5 Star analysts still calling for $115 a share.

NKE makes sense with current fitness trends. But in the long run, this is a quality company that makes sense in a lot of portfolios. So it is tempting for long term investors to swoop in and buy NKE shares at this level for the likely upside in the years to come.

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FIT shares fell $6.73 (-100.00%) in premarket trading Tuesday. Year-to-date, FIT has gained 2.44%, versus a -12.00% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

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