According to the renowned consulting firm McKinsey the wellness market is booming. And the firm reports that consumers intend to keep spending more on products that improve their health. McKinsey estimates that the sector’s annual revenue in America has climbed to an extremely impressive $480 billion and is advancing at an annual rate of 5% to 10%. Meanwhile, market research firm GWI reports that 13% more Americans are implementing measures to improve their health than was the case in 2021. To capitalize on these powerful, favorable trends, here are three top-notch health and wellness stocks to buy.
Celsius Holdings (CELH)
Unlike coffee, Celsius Holdings’ (NASDAQ:CELH) caffeinated drinks include large amounts of vitamins. Specifically, one can of Celsius’ beverages includes 70% of the recommended daily allowance of Vitamin C, 120% of B6, 130% of riboflavin and 250% of B12.
In my view, the fact that Celsius’ beverages are infused with many vitamins, and contain no carbs or fat, helps explain its rapidly rising popularity. Indeed, last quarter, the company’s sales more than doubled to $385 million.
Also noteworthy is that investment bank Piper Sandler recently called CELH the best growth stock among consumer-goods companies. The bank believes that the firm’s market share can continue to climb going forward.
Celsius’ healthy, popular beverages and strong outlook make it one of the best health and beverage stocks to buy.
Planet Fitness (PLNT)
Of course, avoiding obesity is an important means of staying healthy, as research shows that obesity increases the risk of not only heart disease, but many other dangerous diseases as well, including cancer. And exercising in gyms is one way of avoiding obesity.
Knowing this, many Americans have joined gyms including Planet Fitness (NYSE:PLNT). And PLNT has proven adept at capitalizing on these trends, as its top line climbed 13.6% year-over-year (YOY) in Q3 2023. Meanwhile its system-wide same store sales jumped 8.4% YOY to $1.09 billion. Moreover, the firm’s bottom line jumped $10.6 million YOY to $41.3 million.
Additionally, in November, PLNT raised its full-year adjusted net income growth guidance to about 18% from roughly 17% previously.
Also encouragingly, in December, the firm’s interim CEO, Craig Benson, bought 10,000 shares of PLNT stock.
Sweetgreen (SG)
U.S. travel trends have been slowing in recent months after Americans’ post–pandemic travel appetite was finally satiated. But with consumers’ real income continuing to climb, I believe that restaurants will be in a sweet spot as Americans will spend more of their funds on local restaurants and less on air travel and hotels.
Sweetgreen (NYSE:SG), whose restaurants specialize in selling healthy salads, is well-positioned to capitalize on both the latter situation and the health-and-wellness trend.
Showing that SG may indeed be benefiting from these developments, in the third quarter of last year, its revenue jumped 24% YOY, while its same-store sales climbed 4% YOY. Also importantly, its restaurant-level profit increased to $29.1 million from $19.9 million in Q3 of 2022, showing that it’s heading towards overall profitability.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
