Trade-Ideas LLC identified

Herbalife

(

HLF

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Herbalife as such a stock due to the following factors:

  • HLF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.6 million.
  • HLF is down 4.4% today from today's close.

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More details on HLF:

Herbalife Ltd., a nutrition company, develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products. HLF has a PE ratio of 11. Currently there is 1 analyst that rates Herbalife a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Herbalife has been 1.4 million shares per day over the past 30 days. Herbalife has a market cap of $4.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.36 and a short float of 46.1% with 14.83 days to cover. Shares are down 13.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Herbalife as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that revenues have generally been declining.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 738.46% and other important driving factors, this stock has surged by 42.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 732.1% when compared to the same quarter one year prior, rising from $11.25 million to $93.60 million.
  • The gross profit margin for HERBALIFE LTD is rather high; currently it is at 55.86%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, HLF's net profit margin of 8.48% significantly trails the industry average.
  • HERBALIFE LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HERBALIFE LTD reported lower earnings of $3.39 versus $4.91 in the prior year. This year, the market expects an improvement in earnings ($4.75 versus $3.39).
  • HLF, with its decline in revenue, underperformed when compared the industry average of 0.7%. Since the same quarter one year prior, revenues fell by 12.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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