LTH , whoa .I never saw this before because its has less institutional interest and that's one thing I have set as a higher number usually .
This looks so nice , meets all the requirement . Missing 20% week , but, had a 17% so I'm just gonna go ahead and call this a 6/6 .
Also the RS is off the charts for my standards , a definite focus .....even already has a H2 when most stuff is failing to set up and those VOLUMES , oh yea ~ 26 million in last 3 days , mostly buying . That's what's up .
Entries and exits will be noted in comments .
LTH trade ideas
$LTH represents a strong investment opportunity.Fundamental Analysis
1. Financial Performance
Revenue Growth: Life Time has demonstrated steady revenue growth, benefiting from increased memberships and demand for premium wellness experiences post-pandemic.
2022 Revenue: $2.17 billion (up ~30% YoY).
2023 Revenue (Expected): Analysts predict further revenue growth of 15-20% due to increased memberships and pricing power.
Profit Margins:
Operating margins have improved as Life Time transitions towards higher-margin services like digital memberships and specialized training.
Gross margin: ~35%, with expectations for continued improvement.
2. Balance Sheet
Debt Levels: Life Time has a relatively high debt load (~$2.2 billion) due to its expansion strategy, but it has shown discipline in managing refinancing and operational costs.
Liquidity: Strong cash flow generation supports operational and expansion needs, with a current ratio of 1.4, indicating adequate short-term liquidity.
3. Industry Position
Life Time occupies a premium niche in the fitness and wellness industry, differentiating itself from budget gyms. Competitors like Planet Fitness ( NYSE:PLNT ) cater to budget-conscious consumers, while Life Time targets affluent customers willing to pay for an elevated experience.
4. Growth Drivers
Expansion: Aggressive rollout of new wellness centers in suburban and urban areas.
Recurring Revenue: Membership fees, which constitute over 80% of revenue, offer predictable cash flows.
Health and Wellness Trends: Increasing consumer focus on health aligns with Life Time’s premium offerings.
Valuation
P/E Ratio: Currently trades at 35x forward earnings, slightly above the industry average (~30x). While expensive, the premium reflects strong growth expectations.
EV/EBITDA: 12.5x, suggesting moderate value compared to its growth potential.
Technical Analysis
1. Price Action
Current Price: $17.50 (as of January 2025).
52-Week Range: $12.85 - $20.30.
The stock recently bounced off its 200-day moving average (~$16.80), indicating strong support.
2. Moving Averages
50-day MA: $17.10 (bullish crossover above 200-day MA).
200-day MA: $16.80.
Golden cross formation suggests continued upward momentum.
3. RSI (Relative Strength Index)
RSI: 62 (neutral-bullish zone). The stock isn’t overbought, leaving room for upside.
4. Volume Trends
Strong buying pressure over the past three months, with average daily volume increasing by ~15%.
5. Key Support and Resistance
Support Levels: $16.80 (200-day MA), $15.50.
Resistance Levels: $18.80, $20.30 (recent high).
Buy Score: 8.5/10
Reasons to Buy:
Strong Fundamentals: Consistent revenue growth, improving margins, and a resilient business model.
Premium Positioning: Unique market segment with less price sensitivity.
Technical Momentum: Bullish price action supported by moving averages and positive volume trends.
Secular Tailwinds: Rising demand for wellness and health-related services.
Risks:
High debt levels could weigh on financial flexibility.
Macroeconomic conditions (e.g., recession risk) could affect premium memberships.
Valuation is above peers, which could limit short-term upside.
Conclusion
NYSE:LTH represents a strong investment opportunity for medium- to long-term growth. The company benefits from favorable market trends, strong financial performance, and a differentiated business model. With its current technical setup and improving fundamentals, NYSE:LTH is a "BUY" for investors seeking exposure to the premium health and wellness sector.
Life Time Group Holdings, Inc. [LTH]Life Time Group Holdings, Inc.
Trend Analysis
Uptrend: The stock is in a clear uptrend as indicated by the series of higher highs and higher lows. The price has consistently moved above key moving averages, reflecting strong bullish momentum.
Bollinger Bands
Upper Band: The stock recently touched or broke above the upper Bollinger Band, which typically indicates that the stock may be overbought in the short term. This is consistent with a period of consolidation or minor pullback, which seems to have occurred after the recent highs.
Lower Band: The lower band remains well below the current price, indicating room for potential corrections but within a strong upward channel.
Volume Analysis
Increased Volume: There has been a significant spike in volume during the recent upward move, indicating strong buying interest and possibly the entry of institutional investors.
Volume Spikes: The large volume spikes around key resistance levels suggest potential distribution or strong resistance areas where sellers may be active.
Candlestick Patterns
Recent Bullish Candles: The recent candles are predominantly bullish, with large bodies and small wicks, indicating strong buying pressure.
Potential Reversal Signs: There are a few wicks on the top of recent candles, suggesting some selling pressure, which may lead to a minor pullback or consolidation before the next leg up.
Support and Resistance Levels
Support: Immediate support is likely around the $22.50 to $23.00 range, near the middle of the Bollinger Bands.
Resistance: The stock faces resistance around $24.79 (the high of the most recent candle), which if broken, could lead to a further rally.
Conclusion
Bullish Bias: The stock is in a strong uptrend with significant bullish momentum. However, caution is warranted as the stock approaches resistance levels with overbought conditions suggested by the upper Bollinger Band.
Potential Pullback: A minor pullback or consolidation could occur before the stock continues its upward trajectory.
Life Time Group (LTH) AnalysisCompany Overview:
Life Time Group operates health and wellness clubs across the U.S. and Canada. Recently, the company completed a $40 million sale-leaseback transaction, which CEO Bahram Akradi views as a strategic move to strengthen the balance sheet and drive future growth.
Key Highlights:
Strategic Financial Moves: The $40 million sale-leaseback transaction aims to improve financial flexibility and support expansion efforts.
Positive Cash Flow: Akradi projects that Life Time will achieve positive cash flow by Q2, even after accounting for capital expenditures.
Debt Reduction: The company plans to reduce its net debt leverage ratio to 2.0 by year-end, which could positively impact its stock price.
Insider Confidence: CEO Bahram Akradi purchased $654,000 worth of stock at $16.76, contributing to a total of $3.2 million in insider purchases over the past year, signaling strong confidence in the company's future.
Investment Outlook:
Bullish Outlook: We are bullish on NYSE:LTH above the $20.00-$21.00 range.
Upside Potential: With an upside target of $35.00-$36.00, investors should consider Life Time Group's strategic financial moves, expected positive cash flow, and insider confidence as key factors for potential stock appreciation.
📈💪 Keep an eye on Life Time Group for a healthy investment opportunity! #LTH #WellnessClubs 🏋️♂️🚀
Pullback buy in LTHLife Time owns and operates a chain of “athletic country clubs.” They are basically high-end gyms offering everything from free weights and elliptical machines to steam saunas and smoothie bars.
The company went public in late 2021, right before the bear market began.
But the stock is now soaring…
I have circled the signs of accumulation in the volume candles at the bottom of the chart.
Notice the huge influx of buying on the way up and the relatively light volume on retracements. This looks like institutional buying and a sign that buyers are still in control.
Last week’s pullback to the 21-day moving average is buyable in my opinion and should be a good entry point as long as the overall market holds up.
I am taking a position here with a stop below 17.00.