Latest news with #AlexanderPerry
CNBC
05-07-2025
- Health
- CNBC
Gen Z and millennials embrace health and wellness. These stocks could benefit
Americans are embracing health and wellness — and none more than Gen Z and millennials. People are spending more than $500 billion in the United States on wellness, and it is growing at 4% to 5% each year, according to McKinsey . Nearly 30% of Gen Zers and millennials said they are prioritizing wellness "a lot more" compared to a year ago, the report said. In comparison, 23% of the older generations replied the same. Bank of America's credit card data backs that up. Spending in fitness clubs, for example, has been rising across the board for several months, but it is Gen Z and millennials who are kicking it up a notch, said Bank of America analyst Alexander Perry. "We're seeing increased prioritization of fitness by these generations and they're behaving in ways that prior generations did not," he said in an interview with CNBC. "They're really prioritizing fitness first and foremost, but we also believe they're prioritizing other healthy ways of living, focused on healthy eating, drinking, aging, to name a few." For instance, the average Gen Z household spends 2.8 times more than baby boomers on fitness and allocates more than three times of their budget compared to the older cohort, he said. Foot traffic growth at fitness centers is also "well surpassing" that to bars and clubs, Perry said. "They're adopting different leisure activities on the weekends," he said. "The leisure-based activities that are seemingly healthy are what these younger generations are gravitating towards. We think this is pretty sticky and has pretty long-term implications." That coincides with the rise of spending on non-alcoholic beer and seltzer, which has averaged 28 points higher versus alcoholic equivalents since 2021, he noted. Last year, per capita alcohol consumption fell 3% year over year, bringing it to a 10% decline versus the peak in 2021, according to Bernstein. That's the lowest level the firm has seen since 1962. Meanwhile, the International Wine and Spirits Record (IWSR) has projected that non-alcoholic beer will overtake ale to become the second-largest beer category by volume worldwide this year. Still, after years of surveys showing the decline in alcoholic beverage consumption among the younger population, new data from IWSR is showing an uptick . Participation rates among Gen Z consumers have risen to 70% in the six months leading up to May, up from 46% two years ago, the drinks data and analytics provider said. Lastly, anti-aging and recovery products are also becoming popular among the cohort, Perry said. Google searches such as "cold plunge" and "red light therapy" are up significantly, he noted. Fitness club plays There are two fitness clubs poised to benefit from the focus on health and wellness by Gen Z and millennials, according to Bank of America's Perry. Life Time is a high-end fitness provider that is identifying fast-growing trends pretty quickly, he said. One of those is pickleball, which is the fastest-growing sport in the U.S. "They were pretty quick to identify the pickleball trend," Perry said. "They started repurposing parts of their clubs to pickleball courts, and now are one of the largest pickleball providers in the U.S." The company has also started getting into the cold-plunge tub trend, which will also bode well for its long-term tailwinds, he added. Life Time has an average analyst rating of overweight and about 30% upside to the average price target, according to FactSet. LTH YTD mountain Life Time year to date Meanwhile, Planet Fitness is well positioned for the trend as the largest provider at a value-oriented price point, Perry said. In fact, the company has a high penetration of first-time gym goers, he said. "Their penetration in terms of Gen Z and millennials coming into a Planet Fitness has continued to expand and been very strong," Perry said. The stock has an average rating of buy from the analysts covering it and roughly 7% upside to the average price target, per FactSet. Anti-aging opportunity SharkNinja is poised to capitalize on the anti-aging product trend with its light therapy mask CryoGlow, Perry said. The company was quick to identify the recent trend of healthy aging and red-light therapy face masks, he said. "If their past product portfolio is an example of what they're going to be rolling out, I think that you'll continue to see them play in this wellness space in a bigger way," Perry said. The stock has an average analyst rating of buy and 14% upside to the average price target, per FactSet. SN YTD mountain SharkNinja year to date The alcohol story While it is uncertain what the new uptick in Gen Z drinking habits may mean for alcohol stocks, it is clear that sales are on the decline overall. Morgan Stanley said that the Gen Z cohort will likely not match prior generations as it ages when it comes to drinking. The firm said wellness trends like weight-loss and diabetes drugs, as well as an overall negative perception of alcohol's health implications also play a part. Plus, the heavier drinkers are the older generations who will be physiologically unable to consume as much alcohol as they age, analyst Sarah Simon said in a note earlier this year. That means the zero-alcohol segment is "ripe for strong growth," she wrote. The stocks she likes are skewed towards soft drinks and beer. Her top pick in the U.S. is Coca- Cola . She also likes Belgian-based Anheuser-Busch InBev, which trades in the U.S. under ticker BUD . KO YTD mountain Coca-Cola year to date However, Bernstein analyst Nadine Sarwat doesn't expect the moderation of younger generations to remain permanent as they age. She also said economic pressure and the way social media has changed socializing has affected Gen Z's alcohol consumption. "Once they enter full working adulthood, they are reverting back to drinking patterns of previous people in working adulthood," she said. "What no one can agree on is why are they drinking less in those crucial years? Some of it is probably health and wellness. Some of it is probably social media, that it's changed socializing. Some of it is definitely economic pressure," Sarwat added.
CNBC
09-05-2025
- Business
- CNBC
This consumer products stock is rushing to leave China and Wall Street is betting it can pull it off
Wall Street is optimistic that SharkNinja will be able to move its sourcing completely out of China. The company, which manufactures appliances such as vacuums and the Ninja Creami ice cream maker, rallied nearly13% on Thursday following a first-quarter earnings beat. SharkNinja raised its guidance for its fiscal year earnings, revenue growth and adjusted EBITDA estimates. Analysts applauded not only SharkNinja's results, but also its plans to fully diversify out of China before year's end. This gives it a "multi-year head start on competitors," noted Jefferies analyst Randal Konik. Bank of America analyst Alexander Perry also said: "SN has shifted sourcing into S. East Asian countries such as Vietnam and Cambodia SN's tariff mitigation includes increasing ASP's on over 100 products, eliminating lower margin SKUs, and value engineering products to lower production costs. SN does not plan on reducing R & D costs." Analysts remained resoundingly bullish on SharkNinja. Some also raised their price targets for the stock, including BofA and UBS. JPMorgan maintains overweight rating, price target of $98 Analyst Andrea Teixeira's target implies about 7% upside from Thursday's close. "We think there was a lot of debate on whether SN would/ wouldn't guide given the tariff environment and precedent from discretionary peers. The fact that that the company guided inclusive of tariffs and actually raised estimates was a very positive surprise … In a normal environment investors may have been disappointed by that sort of update from SN, but in the current operating environment the results/outlook stand out, in our view, and speak to confidence in underlying business momentum and strength of the management team in deftly navigating the tariff environment." Goldman Sachs keeps buy rating, raises price target to $112 from $100 The bank's forecast is 22% above the stock's current price. "We step away from the quarter with our constructive view intact. While we recognize the discretionary and geopolitical backdrop remains choppy overall, and note that execution risk remains elevated, we believe this provides opportunity for brands with momentum to capture additional market share. Here, the proactive actions SN has been taking to diversify its sourcing exposure outside of China over the last several quarters positions the company well to capitalize on potential shelf space opportunities relative to peers," said analyst Brooke Roach. Oppenheimer stands by outperform rating, raises price target to $120 from $105 Oppenheimer's updated price target implies that shares could rally 31% from here. "We believe today's report likely increases investor confidence in management's ability to navigate any future tariff developments. Our PT goes to $120 from $105, reflecting our increased conviction in the company's ability to navigate the backdrop better than peers, leading to potentially even stronger share gains in the future." Guggenheim reiterates buy rating but lowers target price to $120 from $135 The firm's new target still implies upside of 31% over the next 12 months. "Bottom line, given the benefits associated with SN's a) trusted vendor/supplier relationships, b) ability to value engineer across its assortment — i.e., configurations, features, technology, packaging, and more, and c) unmatched product innovation pipeline — supported by significant market investments, we continue to view SN as one of the best positioned to navigate through today's dynamic macro-economic backdrop," writes analyst Stephen Forbes. UBS maintains buy rating and lifts price target to $121 from $118.80 The bank's 12-month price target is 32% above where SharkNinja is currently trading. "1Q25 sales growth and updated FY25 outlook beat market expectations as before the print investors concerned on slower 2Q/2025 growth under the tariffs. But we are impressed by SN's proactive actions and growth potential amid uncertainties." Bank of America keeps buy rating, raises price objective to $125 from BofA's updated price target implies a potential upside of 36%. "SN remains a top pick and a rare DD% consumer products growth company. We see potential for continued upward EPS revisions given: (1) strong new product contribution led Ninja Swirl, Shark CyroGlow (could add $100mm in 2025), and Shark TurboBlade; (2) significant growth in Int. led by France and Germany; (3) continued wholesale expansion especially in sporting goods, coolers, & outdoor fans/cooking." Canaccord Genuity Capital Markets reiterates buy rating and increases price target to $127 from $112 The firm's new forecast equates to 39% upside. "We cut estimates around Liberation Day expecting numbers to come down but similarly raise them as our confidence in the company's ability to mitigate tariffs and grow in an uncertain macro backdrop has only increased. While peers will likely pull back on innovation and investments, SN will use the current market uncertainty to accelerate investments and further widen its competitive moat." Jefferies maintains buy rating and $175 price target Analyst Randal Konik's target implies upside of 91%. "The Shark and Ninja brands are thriving, driven by best-in-class mgmt and strong execution. The company's innovation flywheel continues to deliver, fueling a compelling global expansion story. With such robust performance and growth potential, we believe SN shares present the best risk/ reward within our coverage and a compelling buying opportunity for investors today."
Yahoo
01-04-2025
- Business
- Yahoo
As Wellness Spending Hits New Highs, Analyst Backs These Stocks
BofA Securities analyst Alexander Perry today writes about the prospects of wellness companies and how prioritizing healthy ways and increased wellness spending will bode for the companies' stocks. Younger generations, particularly Gen Z and millennials, are embracing healthier lifestyles, boosting wellness stocks, said the analyst. This shift is evident in rising spending on fitness, activity-based leisure, and wellness products. Key trends include a surge in gym memberships, with Bank of America data showing fitness-related spending at a 19-month high. Additionally, leisure activities like pickleball are gaining popularity, and interest in healthy eating, recovery, and non-alcoholic beverages continues to grow, the analyst noted. Bank of America card data shows fitness center spending rose 7% year-over-year in February, marking the highest increase in 19 months. Also Read: While all generations increased spending, Gen Z and millennials allocate a significantly higher portion of their budgets to fitness. Gen Z households spend 2.8 times more than baby boomers on fitness, while millennials lead total spending, holding over 30% share. Higher-income consumers continue to drive this growth. The wellness sector continues to gain traction, with healthy eating, recovery, and anti-aging trends driving growth. Non-alcoholic beer and seltzer spending has outpaced alcoholic alternatives by 28pts since 2021, while fitness club foot traffic has surpassed bars and pubs by 22pts. Interest in cold plunges and red light therapy is rising, and pickleball participation has surged 46% year-over-year, reaching 20 million players, opined the analyst. The analyst's top wellness picks are LTH, PLNT, & SN. The analyst raised the price forecast for Life Time Group Holdings Inc. (NYSE:LTH) to $45 from $40, reflecting its pricing power and strong membership demand. The company is strategically positioned to benefit from rising wellness trends, including the expansion of pickleball and cold plunge offerings. Meanwhile, Planet Fitness Inc. (NYSE:PLNT) ($115 price forecast) is seeing accelerated same-store sales in the first quarter. SharkNinja, Inc. (NYSE:SN) is expanding its product line with the launch of the CryoGlow red/blue light therapy mask, noted the analyst. SN ($140 price forecast) is the analyst's top wellness discretionary products pick. Read Next:Image via Shutterstock. Date Firm Action From To Jan 2022 DA Davidson Maintains Buy Jan 2022 Morgan Stanley Maintains Overweight Dec 2021 JP Morgan Maintains Neutral View More Analyst Ratings for PLNT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? PLANET FITNESS (PLNT): Free Stock Analysis Report SHARKNINJA (SN): Free Stock Analysis Report This article As Wellness Spending Hits New Highs, Analyst Backs These Stocks originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
