2 Fitness Stocks to Shape Up Your Portfolio
People have become more health conscious since the turn of the century. Whether it be the rise of organics, fad diets, or yoga clinics, the evidence is in: Health and fitness are now huge industries. Some studies peg the market opportunity for wellness at well over $3 trillion. With that in mind, here are two stocks that will allow you to capitalize on this health and fitness craze.
MindBody (NASDAQ: MB) provides cloud-based management software to wellness companies that includes client relationship management, appointment booking, payments integration, analytics, and much more. Similar to the competitive advantage salesforce.com enjoys, once businesses start using MindBody, it becomes hard to switch platforms, since it's time-consuming and costly to teach employees how to operate a whole new system.
This advantage has shown up in the financials, as the company has grown revenue from $48 million in 2013 to over $150 million this year. The company is running along swimmingly, and management has sweat equity (ah, fitness puns). The co-founder has over $60 million in stock, which means his interests are aligned with ours as investors. The company isn't profitable yet, but losses are narrowing quickly, as net margin has improved 22% in the past two years. Plus, the company is now cash flow positive.
Source: Fool.com