2 Best Fitness Stocks to Kickstart Your New Year

2 Best Fitness Stocks to Kickstart Your New Year

2022 brings with it a chance for a new start for fitness goals, but why not make your portfolio healthier by adding these fitness stocks?

Another January has rolled around and I, like many others I’m sure, have once again made the resolution to focus on health. However, my resolution has a slight twist this year. Instead of trying to fix my own faltering fitness, I’m looking to whip my investment portfolio into shape. 

And I plan to start by adding these two powerhouse fitness stocks.

Nike

Nike (NYSE: NKE) has reigned supreme as the unopposed king of sports apparel for many years now. With more than double the brand value of its next closest competitor, Adidas, it seems unlikely that the Oregon-based sportswear giant is going to be dethroned anytime soon.

Investors have seen their money more than triple in the company over the past five years and Nike doesn’t look anywhere close to stopping its consistent level of growth. It boasts tremendous brand awareness, impressive underlying financials, and has even continued to innovate in the midst of the increasing digitization of the world.

Many wondered how apparel companies like Nike could ever hope to benefit from the push to develop the now infamous metaverse. However, the firm showed decisive action by announcing its intent to sell digitized shoes – called CryptoKicks – and apparel as non-fungible tokens (NFTs). It also announced plans for its own virtual world, creatively dubbed ‘Nikeland,’ within the Roblox ecosystem. This could create valuable brand awareness and cement the company as one of the early movers among big brands within the virtual space.

All of this bodes well for Nike’s future as it continues to show solid growth. Investors can feel safe owning the stock due to its strong hold over the market, yet still remain hopeful of its potential to keep offering a solid return for years to come.

Peloton

I’ll admit, 2021 was a difficult year for Peloton (NASDAQ: PTON). A premature return to semi-normal life following what we had hoped was the end of the COVID-19 pandemic saw the stock experience a massive fall off, along with other pandemic darlings such as Netflix and Zoom. While this reopening of the world didn’t exactly last too long, Peloton was forced to endure further lows following an underwhelming full-year outlook in its third-quarter earnings report.

However, all is not lost for the exercise equipment manufacturer. Subscriptions continued to grow throughout the year, and a price reduction for the company’s flagship bike should hopefully enable access to a whole new portion of the market. In fact, with over 5.9 million members on the platform, subscription revenue could soon outpace hardware sales.

Rapid growth in 2020 saw the company invest heavily in itself through acquisitions and improving logistics, but some believed that finances got spread too thin. This very well could be the case, but the company has reacted well by implementing a hiring freeze, and the investments made will hopefully begin to transform into profit in the near future.

It may take some time for Peloton to stabilize following a tumultuous year, but there’s still plenty of underlying factors that investors should be excited about. Peloton’s past may have been built on its hardware offerings, but its subscription model is undoubtedly the future, and the future looks bright.

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