Herbalife Ltd. (HLF): Today's Featured Drugs Winner

Herbalife ( HLF) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.8%. By the end of trading, Herbalife rose $1.62 (3.6%) to $47.17 on heavy volume. Throughout the day, 10.6 million shares of Herbalife exchanged hands as compared to its average daily volume of three million shares. The stock ranged in a price between $43.37-$47.94 after having opened the day at $43.56 as compared to the previous trading day's close of $45.55. Other companies within the Drugs industry that increased today were: CHINA NUOKANG BIO-PHARMACEUTICAL ( NKBP), up 26.5%, Pluristem Therapeutic ( PSTI), up 13.3%, Theratechnologies ( THER), up 9.6%, and Coronado Biosciences ( CNDO), up 9.5%.

Herbalife Ltd., a network marketing company, sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide. Herbalife has a market cap of $5.49 billion and is part of the health care sector. The company has a P/E ratio of 13.5, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 11.8% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Herbalife a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Herbalife as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Dynavax Technologies Corporation ( DVAX), down 22.6%, Amyris ( AMRS), down 21.3%, Biosante Pharmaceuticals ( BPAX), down 14.4%, and China Shenghuo Pharmaceutical Holdings ( KUN), down 12.1%, were all losers within the drugs industry with Merck ( MRK) being today's drugs industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).
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