Life Time Group Holdings Inc

Life Time Group Holdings raised its full-year 2026 revenue guidance to between $3,350 million and $3,375 million and net income guidance to between $358 million and $363 million, driven by strong second-quarter results and an expansion of large-format premium clubs. The company reported higher second-quarter and year-to-date revenue and net income, beating earnings expectations, and outlined plans to open 14 largely ground-up, large-format clubs this year. The upgraded outlook reflects the company's focus on larger, premium locations and growing ancillary wellness services, which aim to lift average revenue per member and deepen engagement among its affluent customer base. Despite the positive guidance, the company's heavy club build-out and reliance on sale-leaseback financing remain key risks that could pressure cash flow if credit conditions tighten.

Zacks Equity Research has identified Life Time Group Holdings, Atour Lifestyle Holdings, Lindblad Expeditions Holdings, and The Marcus Corporation as stocks likely to benefit from current trends in the leisure and recreation services industry. The industry faces pressure from cautious discretionary spending due to persistent inflation and macroeconomic uncertainty, along with elevated labor costs and higher interest expenses. However, companies are gaining from digital initiatives, strategic partnerships, and operational efficiencies, while robust demand for live entertainment, resilient cruise bookings, and steady leisure travel provide tailwinds. The Zacks Leisure and Recreation Services industry carries a Zacks Industry Rank of 195, placing it in the bottom 21% of 246 Zacks industries, yet it has outperformed the broader Consumer Discretionary sector over the past year with a 4.2% gain versus the sector's 15.3% decline. Atour Lifestyle holds a Zacks Rank of 1, or Strong Buy, with expected 2026 sales and earnings growth of 40.2% and 26.7%, respectively. Marcus also holds a Zacks Rank of 1, with expected 2026 sales growth of 5.7% and earnings growth of 722.2%. Life Time Group has a Zacks Rank of 2, or Buy, with expected 2026 sales growth of 11.2% and earnings growth of 17.5%. Lindblad Expeditions also has a Zacks Rank of 2, with expected 2026 sales growth of 10.1% and earnings growth of 130.8%.

Zacks Investment Research recommends four leisure and recreation services stocks that have each returned more than 30% year to date, citing strong fitness product sales and digital initiatives. The picks are Lindblad Expeditions Holdings, Life Time Group Holdings, OneSpaWorld Holdings, and Pursuit Attractions and Hospitality, all carrying a Zacks Rank #2 (Buy). Lindblad Expeditions Holdings has an expected current-year earnings growth rate of more than 100%, with the consensus estimate rising 50% over the last 60 days. Life Time Group Holdings has an expected earnings growth rate of 16%, with the estimate up 5% over the same period. OneSpaWorld Holdings has an expected earnings growth rate of 17.2%, with the estimate improving 3.6%, while Pursuit Attractions and Hospitality has an expected earnings growth rate of 33.9%, with the estimate up 13.7%.

Life Time has opened its 16th Chicago-area location, Life Time North Shore in Northbrook, Illinois, featuring 28 pickleball courts. The 114,000-square-foot athletic country club sits on more than 17 acres and includes 18 indoor courts and 10 outdoor courts, with stadium-style seating for tournaments. It is the sixth Life Time opening in the Chicago area in five years and anchors a network that includes Northbrook, Old Orchard, Evanston, Vernon Hills and Lake Zurich. The club also offers group training, yoga, barre, a recovery suite, a LifeCafe, a Kids Academy, and a Beach Club opening in 2027. A new club in Naperville is slated for early 2027.

LifeSpa, the full-service spa and salon inside Life Time athletic country clubs, is bringing a training mindset to summer skincare with a heightened focus on Hydrafacial treatments. LifeSpa has offered Hydrafacial since 2004 and is now among the nation's largest providers, with services available at more than 150 Life Time destinations across the U.S. and Canada. The treatment cleanses, exfoliates, extracts impurities and deeply hydrates the skin in a single session, and is available in three options: Signature at 30 minutes, Deluxe at 45 minutes, and Platinum at 60 minutes. Services are open to both Life Time members and non-member guests.

Zacks Investment Research recommends five health and fitness stocks that delivered strong first-half returns and carry favorable Zacks Ranks, signaling further upside. Columbia Sportswear, a Zacks Rank #1, is advancing its ACCELERATE strategy targeting younger consumers and has seen its current-year earnings estimate rise 3.8% over the last 30 days. OneSpaWorld Holdings, a Zacks Rank #2 provider of wellness services on cruise ships and on land, has a current-year earnings growth estimate of 17.2% and a 3.6% upward revision in the past 60 days. United Natural Foods, also a Zacks Rank #2, is benefiting from efficiency initiatives and private-brand innovation, with next-year earnings estimates up 10.9% over the last 30 days. Vita Coco, a Zacks Rank #1, is projected to grow earnings 47.9% this year and has seen estimates climb 11.4% over 60 days. Life Time Group, a Zacks Rank #2 operator of health and fitness communities, has a current-year earnings growth estimate of 16% and a 5% positive revision over 60 days.

Life Time Group Holdings, Inc. presents a better value opportunity than Viking Holdings based on Zacks Rank and valuation metrics. LTH holds a Zacks Rank of #2 (Buy) with an improving earnings outlook, while VIK is ranked #3 (Hold). LTH trades at a forward P/E of 20.98 and a PEG ratio of 1.28, compared to VIK's forward P/E of 28.67 and PEG of 1.36. LTH also has a significantly lower price-to-book ratio of 2.4 versus VIK's 39.29. These factors contribute to LTH earning a Value grade of B, while VIK receives a D.