NEW YORK (TheStreet) -- Shares of GNC Holdings Inc. (GNC) - Get Report are gaining by 6.36% to $48.97 in mid-morning trading on Monday, after the health and wellness products retailer announced that it has reached an agreement with the New York State attorney general stating that its products are in compliance with guidelines set by the Food and Drug Administration.

The company also agreed to take on stricter testing standards for its herbal supplements that exceed FDA requirements, a first in the U.S., Attorney General Eric Schneiderman said in a statement, according to Reuters.

GNC didn't have to pay monetary damages, only implement reforms.

"In its response to the NYAG's inquiry, and as highlighted in the agreement, GNC provided the results of rigorous tests conducted both internally and by independent third parties. These tests provided conclusive evidence that GNC's products are safe, pure, properly labeled and in full compliance with all regulatory requirements," GNC said in a statement.

Earlier in the month AG Schneiderman announced a multi-state partnership to investigate the practices of the herbal supplement industry, including making sure the companies producing the supplements are listing all ingredients on their labels.

The New York State Attorney General's office had previously found contaminants, unlabeled plant species, and other substances in some store brand supplements.

Separately, TheStreet Ratings team rates GNC HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GNC HOLDINGS INC (GNC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, good cash flow from operations, increase in stock price during the past year, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• GNC HOLDINGS INC has improved earnings per share by 16.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GNC HOLDINGS INC increased its bottom line by earning $2.81 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.81).
• Net operating cash flow has significantly increased by 189.48% to $65.77 million when compared to the same quarter last year. In addition, GNC HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 22.32%.
• The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, GNC HOLDINGS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
• 38.72% is the gross profit margin for GNC HOLDINGS INC which we consider to be strong. Regardless of GNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GNC's net profit margin of 8.52% compares favorably to the industry average.
• You can view the full analysis from the report here: GNC Ratings Report