Now that the masses are emerging from quarantine, people will be looking to burn away the fat, get in shape and look their best. However, healthy eating will only do so much. Unfortunately, you can eat as healthy as possible and still keep your “quarantine pounds” unless you start moving.

Exercise is necessary to get the body in tip-top shape for a summer full of socializing and fun under the sun. Nike (NKE), lululemon athletica (LULU), Peloton (PTON), and Fitbit (FIT) should be on every investor’s radar as the economy reopens.

Nike (NKE)

High-quality sneakers and workout gear are necessary to exercise, burn away the fat and rebuild flabby bodies in the aftermath of the first wave of the coronavirus. NKE stands to benefit from the movement back toward health-conscious living.

NKE’s athletic footwear and apparel appeals to men, women and kids of all ages. All in all, NKE operates in more than 160 countries. NKE moved up to its pre-covid trading level of $104 only to dip back down to its current price of $97 and change. The analysts’ high target for NKE is $115 with 19 analysts recommending investors buy the stock, three recommending investors hold and none recommending a sell.

NKE POWR Ratings are impressive: an A Trade Grade and Bs across the remainder of the components. The stock is ranked #1 of 31 publicly traded companies in the Athletics & Recreation category.

Lululemon Athletica (LULU)

It is not often that you find the investment community uber-bullish on a stock with a forward P/E ratio near 70. However, this is the case with LULU. This athletic apparel enterprise makes and distributes clothing and accessories primarily targeted to women. The company’s offerings are highlighted by fitness gear yet it also sells socks, bags and other sundries.

The POWR Ratings have LULU rated as a Strong Buy with an A in every POWR Component but for its Industry Rank. In fact, LULU is the highest-rated stock in the entire Fashion & Luxury space. LULU’s price returns are in the green across all periods of time: one-month 22.65%, one-year 71.50% and five-year 352.79%.

Though LULU inventory is climbing, the stock should continue its upward ascent in the quarter to come. Look for LULU to move toward its 52-week high of $324.76 in the weeks and months ahead as people scoop up the company’s gear in an attempt to look stylish while burning off those pesky quarantine pounds.

Peloton (PTON)

If the idea of spending a couple thousand dollars on an exercise bike with a video screen does not appeal to you, you are not alone. However, this sentiment has not stopped PTON in its quest to push units. PTON sales have soared since the start of the pandemic.

Though the average person cannot afford a PTON exercise bike, the company’s target customer is not the average American. Rather, PTON is targeting those in the upper-middle class as well as the wealthy. As an example, professional athletes far and wide have purchased PTON exercise bikes during the quarantine. Furthermore, the company sells the Peloton Tread as well as the Peloton Digital, consisting of a wide array of fitness-oriented offerings.

The POWR Ratings have PTON in an A-rated industry. The company’s price returns are in the green for each time period. The PTON six-month price return is 56.60%. The company’s three-month price return is an impressive 96.23%. The stock’s price return across the past month is 3.14% The analysts have set a lofty price target of $60 for the stock with 19 recommending investors buy, one recommending investors hold and one advising to sell.

Those who are uninterested in spending thousands of dollars for PTON bikes and treadmills are likely to be tempted by the company’s $12.99/month streaming workout sessions. Furthermore, revenue is up 66% on a year-over-year basis for the most recent quarter.

PTON has a retention rate in excess of 90%, largely because its bikes and treadmills require such a significant upfront investment. There is a good chance PTO trends higher from here on out, especially if gyms do not reopen in a timely or comprehensive manner.

Fitbit (FIT)

DIY fitness is en vogue now that gyms are slowly reopening to the public or going bankrupt. People are tracking their own fitness and health with digital monitors such as those made by FIT. FIT’s activity tracking devices gauge personal data ranging from calories burned to steps taken, miles traveled, etc.

FIT products empower individuals to set nuanced goals, obtain important insights regarding personal fitness and benefit from virtual coaching. Fit has moved sideways in the range of $6 to $7 since the coronavirus outbreak.

It is particularly interesting the company recently debuted an affordable coronavirus ventilator. This emergency ventilator received approval from the United States Food & Drug Administration. However, it is only meant to be used when a regular ventilator is inaccessible. If there is a second wave of the coronavirus, FIT’s emergency ventilators are sure to sell like hotcakes.

Want More Great Investing Ideas?

Do NOT Buy This Dip! Are you prepared for the bear market’s return?

7 “Safe-Haven” Dividend Stocks for Turbulent Times

9 “BUY THE DIP” Growth Stocks for 2020

NKE shares were unchanged in after-hours trading Monday. Year-to-date, NKE has declined -2.92%, versus a -4.04% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

More Resources for the Stocks in this Article