HSAs for Gym Memberships? These 3 Fitness Stocks Could Soar

Key Points

• HSA fitness spending could cover most of a Planet Fitness membership, supporting growth as the company targets 5,000 U.S. locations.
• Life Time Group’s premium model aligns with HSA users, and analyst forecasts suggest over 30% upside as younger members drive recurring revenue.
• Garmin’s fitness trackers offer a lower-cost alternative to Apple, making them attractive for consumers spending tax-free HSA dollars on wearables.

The “Big Beautiful Bill,” working its way through Congress, has many provisions of interest to investors. One that may be flying under the radar would allow individuals to use health savings accounts (HSAs) for fitness-related expenses.

Specifically, the provision would allow $500 for individuals and $1,000 for families to be applied for fitness-related expenses. The list of qualifying expenses includes, but is not limited to:

• Gym memberships

• Fitness classes (e.g., yoga, spin, pilates)

• Personal training sessions

• Certain sports or athletic league fees

• Exercise equipment (possibly with limits or medical justification)

This provision would mark a progressive shift in HSAs that acknowledges preventive care's role in overall physical and mental health. The theory is that encouraging fitness activities may be a key to reducing long-term healthcare costs.

This means investors may want to pay attention to companies well-positioned to benefit from higher demand. The three fitness stocks listed below are such companies.

Congress Just Took Away One More Reason to Avoid the Gym

Planet Fitness Inc. NYSE: PLNT would appear to be an obvious winner from this provision. The company already operates as the low-cost name in this space.

However, since a health-savings account is funded with pre-tax dollars, it grows tax-free. Therefore, a member could pay for almost their entire membership through the HSA.

This would also align with the company’s expansion plans. There are currently around 2,700 Planet Fitness locations, most of which are franchise-owned. The company plans to expand that number to 5,000 in the United States alone.

PLNT stock is up 48% in the last 12 months as the Make America Health Again (MAHA) movement gains momentum. The stock price growth has slowed in 2025, but analysts are raising their price targets for the stock, which crossed over its 50-day simple moving average in May.

In the short term, the stock is trading towards the top of its 52-week range. It also has a price-to-earnings (P/E) ratio of over 50x, which is about 6% higher than its trailing-twelve-month (TTM) average.

Premium Fitness Aligned With HSA Demographics

One objection to this provision is that it may benefit higher-income individuals who are more likely to have HSA accounts. However, that plays to the business model of Life Time Group Holdings Inc. NYSE: LTH, which focuses on delivering premium health, fitness, and wellness experiences to its community.

That community had approximately 1.5 million members as of May 2025. According to Life Time Group’s investor presentation, approximately 44% of members are under the age of 35.

Life Time Group is a small company with a market cap of around $6 billion. However, it’s solidly profitable and has been growing its top and bottom lines year-over-year (YOY). That’s due, in part, to the company’s recurring revenue model. That may be one reason institutional investors own over 77% of the company’s stock.

At around 28x earnings, LTH stock is trading at a discount to itself. It also compares favorably with other consumer discretionary stocks.

Analysts believe there’s more upside ahead. The consensus price target of $35.92 offers investors 30% upside from its closing price on June 18.

A Smart Bet on Affordable Fitness Tech

Apple Inc. NASDAQ: AAPL may have made fitness trackers cool. However, in typical Apple fashion, it was entering a crowded field. One of the leading names at the time was Garmin Ltd. NYSE: GRMN.

The company launched GPS fitness technology over 10 years before the Apple Watch. It remains one of Apple's most significant competitors, particularly among runners, cyclists, and triathletes.

Garmin can benefit from this fitness provision because its products are available at a substantial discount compared to an Apple Watch. That would give consumers more wiggle room to purchase a device with money to spare for classes or gear, which means more revenue for Garmin.

Garmin is a mature player in this sector, and that’s reflected in the GRMN stock price. It's up 23.25% in the last 12 months, but down about 3% in 2025. However, it has an attractive dividend that has increased for eight consecutive years and currently pays out $3.60 per share.