Shares of Life Time Group Holdings, Inc. (LTH) have been strong performers lately, with the stock up 8.3% over the past month. The stock hit a new 52-week high of $47.24 in the previous session. Life Time Group Holdings has gained 66.3% since the start of the year compared to the -8.4% move for the Zacks Consumer Discretionary sector and the -0.8% return for the Zacks Leisure and Recreation Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 30, 2026, Life Time Group Holdings reported EPS of $0.48 versus consensus estimate of $0.45 while it beat the consensus revenue estimate by 2.55%.
For the current fiscal year, Life Time Group Holdings is expected to post earnings of $1.7 per share on $3.33 in revenues. This represents a 18.06% change in EPS on a 11.27% change in revenues. For the next fiscal year, the company is expected to earn $1.99 per share on $3.71 in revenues. This represents a year-over-year change of 17.11% and 11.33%, respectively.
Valuation Metrics
Though Life Time Group Holdings has recently hit a 52-week high, what is next for Life Time Group Holdings? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Life Time Group Holdings has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 26X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.7X. On a trailing cash flow basis, the stock currently trades at 16.7X versus its peer group's average of 9.5X. Additionally, the stock has a PEG ratio of 1.58. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Life Time Group Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Life Time Group Holdings passes the test. Thus, it seems as though Life Time Group Holdings shares could still be poised for more gains ahead.
How Does LTH Stack Up to the Competition?
Shares of LTH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Lindblad Expeditions (LIND). LIND has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Lindblad Expeditions beat our consensus estimate by 800.00%, and for the current fiscal year, LIND is expected to post earnings of $0.16 per share on revenue of $851.05 million.
Shares of Lindblad Expeditions have gained 13.6% over the past month, and currently trade at a forward P/E of 182.32X and a P/CF of 29.1X.
The Leisure and Recreation Services industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LTH and LIND, even beyond their own solid fundamental situation.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant 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
Life Time Group Holdings, Inc. (LTH): Free Stock Analysis Report
Lindblad Expeditions (LIND): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).