This Stock Could Benefit from the Oprah Effect in 2020

As we near the end of 2019, many of us will make a resolution to lose weight.

After months of rummaging through our kids’ Halloween candy, stuffing ourselves silly with turkey, we’ll attend office parties, and holiday parties.  Then once we’re finished eating everything in sight, we realize we can’t see our own feet over our gut.

That’s when we make that year-end promise that next year will be different.

We make plans to diet and exercise.  We join gyms, and weight loss clinics.  We get fired up, hoping to be slimmer in months.  For some of us, we get serious. For others, we pay for gym membership monthly, and attend maybe twice in a year.  

The best part – that resolution creates investing opportunities.  

Look at Weight Watchers, or WW for example. 

In most years – with the exception of 2018– WW tends to run higher at the start of the year.  We can see that in 2017 and in 2018. In addition to year-end resolutions, the Oprah Effect may boost the stock in 2020, as well.  Next year, she’ll kick off Oprah’s 2020 Vision: Your Life in Focus.

“She will tour the country to discuss her health journey and dialogue with experts on how to live healthier lifestyles. Oprah will also sit down for one-on-one interviews with currently unnamed celebrities to chat about health,” reports Yahoo Finance.

We can also see it in shares of Planet Fitness (PLNT), which has exploded in recent years.  Since 2017, shares of PLNT have pushed higher at the start of every year. 

Aside from the resolution catalyst, PLNT is posting strong numbers, as well. In recent weeks, the company reported net income of $25.8 million, or 31 cents per share, up from $17.5 million, or 20 cents per share last year. Adjusted EPS of 36 cents was in line.  Revenue of $166.8 million was up from $136.7 million.