Trade-Ideas: Herbalife (HLF) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader 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 $75.9 million.
- HLF is up 7.2% 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 18. Currently there are no analysts that rate Herbalife a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Herbalife has been 1.9 million shares per day over the past 30 days. Herbalife has a market cap of $5.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.43 and a short float of 44.8% with 18.69 days to cover. Shares are up 8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Herbalife as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, HLF's share price has jumped by 39.71%, exceeding the performance of the broader market during that same time frame. 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 gross profit margin for HERBALIFE LTD is rather high; currently it is at 55.95%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.69% is above that of the industry average.
- HERBALIFE LTD's earnings per share declined by 19.0% 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 increased its bottom line by earning $3.96 versus $3.39 in the prior year. This year, the market expects an improvement in earnings ($4.62 versus $3.96).
- HLF, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Personal Products industry average. The net income has decreased by 18.2% when compared to the same quarter one year ago, dropping from $103.29 million to $84.50 million.
- You can view the full Herbalife Ratings Report.
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