Buy 5 High-Flying Health & Fitness Stocks Year to Date With More Upside

Zacks
07 Mar

U.S. stock markets have been suffering from severe volatility since last month. Volatility is likely to remain in the near term primarily due to tariff and trade-related policies taken by the Trump administration. Recently released several key economic data have also shown that the U.S. economy is softening. 

At present, the broad-market index — the S&P 500 — and the tech-heavy Nasdaq Composite are in negative territory year to date. The blue-chip Dow is trading almost flat. At this juncture, with a pleasant surprise, a handful of health and fitness stocks are flying high boosting investors’ sentiment.

Here we recommend five stocks from the Health and Fitness space with a favorable Zacks Rank that have rallied year to date. Their favorable Zacks Rank indicates more upside in the near term. These are: Garmin Ltd. GRMN, Sprouts Farmers Market Inc. SFM, Doximity Inc. DOCS, Life Time Group Holdings Inc. LTH and V.F. Corp. VFC.

Growing Demand for Health and Fitness Companies

Health and fitness companies focus on improving and maintaining physical well-being through products and services like gym memberships, fitness equipment, nutritional supplements and wellness programs. 

Health and fitness companies benefit from consistent demand on growing global awareness of health issues and the importance of physical fitness. This trend is supported by rising rates of lifestyle-related diseases and a growing emphasis on preventive healthcare. 

The space’s growth is backed by diverse revenue streams, which include subscriptions, product sales and services, making it attractive to investors seeking long-term gains. Moreover, technological advancements, such as fitness trackers and wearable fitness devices, provide new opportunities for growth and drive further consumer engagement and revenue potential.

However, the market is highly competitive. Economic downturns can impact consumer spending on non-essential health and fitness products. Rapid changes in consumer preferences and health trends can make it challenging for companies to continuously lure customers. 

5 Health and Fitness Stocks to Buy

These stocks have strong growth potential for 2025 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank  stocks here.

The chart below shows the price performance of our five picks in the past year.


Image Source: Zacks Investment Research

Garmin Ltd.

Zacks Rank #1 Garmin is benefiting from strong momentum across the Fitness and Auto OEM segments. While strength in the Fitness segment is primarily attributed to advanced wearables demand, Auto OEM revenues are driven by increased shipments of domain controllers. Strong momentum across the Aviation, Marine and Outdoor segments is a positive for GRMN. Increasing demand in the Americas and EMEA regions is a plus. 

GRMN’s growing focus on continued innovation, diversification and market expansion to explore opportunities across all business segments is praiseworthy. Our estimates suggest GRMN’s revenues to witness a CAGR of 9.3% during fiscal 2025-2027. 

Garmin has an expected revenue and earnings growth rate of 9.7% and 8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days.

Sprouts Farmers Market Inc.

Zacks Rank #1 Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller-format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both the top and the bottom lines grew year over year. 

Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM’s strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity.

Sprouts Farmers has an expected revenue and earnings growth rate of 12.1% and 21.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.3% over the last 30 days.

Doximity Inc.

Zacks Rank #1 Doximity provides a digital platform for medical professionals. DOCS’ network members include physicians across all specialties and practice areas. DOCS provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and conduct virtual patient visits.

Doximity has an expected revenue and earnings growth rate of 11.5% and 8.1%, respectively, for next year (ending March 2026). The Zacks Consensus Estimate for next-year earnings has improved 12.9% in the last 30 days.

Life Time Group Holdings Inc.

Zacks Rank #1 Life Time Group Holdings provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. LTH is primarily engaged in designing, building, and operating sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment in suburban and urban locations of metropolitan areas. 

LTH also offers fitness floors with equipment, locker rooms, group fitness studios and spaces, indoor and outdoor pools and bistros, indoor and outdoor tennis and pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. 

LTH’s Life Time Digital provides live-streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. Further, LTH offers media, athletic events, and related services.

Life Time Group Holdings has an expected revenue and earnings growth rate of 12.9% and 36.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.4% over the last seven days.

V.F. Corp.

Zacks Rank# 2 V.F. delivered a strong third-quarter fiscal 2025 that aligned with its guidance for sequential improvement. Both revenues and earnings beat the Zacks Consensus Estimate, showing year-over-year growth. VFC saw robust performance in its DTC and wholesale channels, along with favorable FX rates and cost reductions. 

VFC's Reinvent transformation program, aimed at reducing costs, strengthening the balance sheet, revitalizing the U.S. business, and driving the Vans turnaround, is making significant progress. VFC is making strong progress in reducing its cost base through targeted savings, aiming to achieve a $300 million run rate in initial gross reinvest cost savings by fiscal 2025.

V.F. has an expected revenue and earnings growth rate of 2.3% and 46.2%, respectively, for next year (ending March 2026). The Zacks Consensus Estimate for next-year earnings has improved 1.9% in the last 30 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Garmin Ltd. (GRMN) : Free Stock Analysis Report

V.F. Corporation (VFC) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

Doximity, Inc. (DOCS) : Free Stock Analysis Report

Life Time Group Holdings, Inc. (LTH) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10