It’s been a crazy year full of growth for the at-home fitness industry.
With 2020’s lockdowns, restrictions, and other social-distancing measures, many consumers avoided exercising at gyms.
Instead, they turned to home workout routines and products that enabled them to reach all their goals from the comfort of their living rooms.
This stands true even today…
As the global situation improves, and economic activity crawls its way back to “normal,” fitness enthusiasts are still choosing to workout from home.
This means that what many thought would be a short-term trend, could actually be a long-term tailwind for companies in the space.
This is especially true considering research aggregator ReportLinker shows that the home gym equipment market is forecasted to see a compound annual growth rate of 9% between now and 2025.
And the virtual fitness industry may ultimately play a major part in the future of exercise as online personal trainers, e-fitness courses, and more grow increasingly popular.
To help investors capitalize on this trend, I’m bringing you one of the best names in the market that’s continuing to see strong demand for its fitness products and services…
This One Fitness Stock Is Dominating the Market
Peloton (NASDAQ: PTON) is an exercise equipment manufacturer best known for its exercise bikes.
These bikes cost about $1,900 (depending on the model) and are built with screens attached that enable users to subscribe to and attend a variety of digital fitness classes.
This product-development strategy has paid off in spades for the company…
In PTON’s most recent quarter, the exercise equipment manufacturer’s Connected Fitness Subscriptions skyrocketed by 137% year-over-year to more than 1.3 million.
Meanwhile, the company’s paid Digital Subscriptions surged by 382% to over 510,000…
While this growth has been incredible, the company is also continuing to make strategic moves to solidify its position for the future.
Last week, PTON acquired another equipment manufacturer named Precor for $420 million.
As part of the acquisition, PTON is set to receive 625,000 square feet of manufacturing space.
In turn, this will bolster its current production capabilities and help the company speed up its overall process.
And given PTON’s products and services are continuing to see massive demand, the deal, which is expected to close in early 2021, will likely be a long-term tailwind for the company moving forward.
In fact, the company has already increased its revenue guidance forecast from around $3.5 billion to $3.65 billion to $3.9 billion.
PTON increased its earnings before interest, taxes, depreciation, and amortization as well to over $300 million compared to its prior outlook of $200 million to $275 million.
With most investors focused on big tech, a frenzy is quietly erupting in one tiny sector, with gains like 500% in two months and 104% in a single day.