With the rise of at-home exercise activity during the COVID-19 pandemic, many investors left gym company Planet Fitness (NYSE: PLNT) for dead. However, the company hit records for gym membership and revenue in 2022, showing it's not only surviving, it's also thriving.

There are some who still doubt Planet Fitness' prospects. But I think it's reasonable to assume that this stock will outperform the S&P 500 over the next five years and beyond. Here's why.

Planet Fitness has a unique approach to the gym market. Rather than target hard-core exercisers, the company attempts to appeal to casual and first-time gym-goers. From a potential market size perspective, this is the better strategy. The casual gym crowd naturally outnumbers those who take fitness more seriously.

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Source Fool.com