Apple Goes Toe to Toe with Peloton on the Stock Market – Is Now a Good Time to Invest in Fitness?

Apple (NASDAQ: AAPL) released its Apple Fitness+ home fitness app on Monday, and reviewers are already saying it’s “cheaper and just as good” as the popular Peloton (NASDAQ: PTON) app. Peloton’s offerings have sparked an almost-cult-like enthusiasm for the classes and instructors, not to mention the pricey spin bike itself.

You can use the Peloton app with nearly any type of home exercise equipment, including other brands of exercise bikes, treadmills, ellipticals or rowing machines. But some of the classes are designed for no equipment at all. The same goes for Apple Fitness+, although you do need an Apple Watch to track your movement and metrics such as heart rate. With the Fitness+ subscription, you can watch the pre-recorded exercise classes on iPhones, iPads or on Apple TV.

See: Peloton and 9 Other Fitness Stocks on a Winning Streak Right Now
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With the announcement of the app, Apple stock began to crawl up after close on Monday, opening at $124.34. It spiked to a one-month high minutes after the exchanges opened Tuesday morning and continued to climb. Peloton had a good day yesterday, too, clearing its buy points Monday and getting another lift in after-hours trading, showing the strength of the home fitness market right now. It rose almost three points mid-morning Tuesday in spite of Apple’s new product potentially giving the Peloton app a run for its money.

Besides these powerhouses, find out which fitness stocks could help you build a buff portfolio heading into 2021.

Planet Fitness (NYSE: PLNT)

Until Tuesday, gym chain Planet Fitness (NYSE: PLNT) had been trending upward in light of successful COVID-19 vaccine roll-outs and opportunities in digital fitness. BMO Capital Markets kept an “outperform” rating on the stock. However, a column in this morning’s Wall Street Journal, titled “Planet Fitness Needs to Flatten More Curves,” caused the price point to tumble, losing 2.64% since market open. The company’s revenue dropped by 37% in the third quarter, while its revenue for refurbishing equipment and re-selling to its franchisees fell by 71%.

See: The Ridiculous Cost of These Outrageous Fitness Trends

Fitbit (NYSE: FIT)

Fitbit (NYSE: FIT), the wearable fitness tracker manufacturer, exceeded revenue projections by $64.9 million in Q3 2020, showing a 5% year-over-year increase. However, tread carefully. A lot of this stock’s value hinges on the success or failure of a Google merger, which has been in the works for about a year.

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Lululemon Athletica (NASDAQ: LULU)

In June 2020, Lululemon Athletica (NASDAQ: LULU) purchased MIRROR for $500 million. MIRROR is a semi-transparent video screen that doubles as a full-length mirror for a unique home fitness video experience. The athleisure company’s expanded, subscription-based offerings and foray into home workout equipment could be the perfect fit for revenue growth.

Year in Review: Top Merchandise Trends in 2020

Nautilus (NYSE: NLS)

Before there was Peloton or MIRROR, there was Nautilus (NYSE: NLS), a pioneer in exercise bikes, treadmills and ellipticals for the home. The company’s stock has had its ups and downs of late as it tries to compete with the trendier Peloton. But its track record of manufacturing rock-solid equipment gives it a place on our list. The stock has more than doubled since June.

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Nike (NYSE: NKE)

It doesn’t make exercise equipment, but the soft goods fitness brand deserves a spot on this list in anticipation of its quarterly report Friday. Nike (NYSE: NKE) stock hit a six-month high today, and rising profit margins and an expanded focus on e-commerce could give Nike further lift.

Just Do It: Nike Stock Sees a 10% Surge as Its Revenue Goes Through the Roof

Of course, the success of these stocks, apart from Planet Fitness, relies on one important premise — the longevity of the at-home fitness trend after the pandemic ends. Some experts are calling at-home fitness the “now normal” rather than a new normal that will last, according to Motley Fool.

But when apps, challenges and online fitness communities can bring people together across the miles, people may create a new routine that blends at-home fitness with trips to the gym. We can only hope that, when life returns to normal, people will maintain their commitment to physical fitness, wherever they opt to work out and whatever equipment they choose.

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About the Author

Dawn Allcot

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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