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 up 0.7%. By the end of trading, Herbalife rose $1 (2%) to $51.41 on light volume. Throughout the day, 1.9 million shares of Herbalife exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in a price between $50.38-$51.70 after having opened the day at $50.40 as compared to the previous trading day's close of $50.41. Other companies within the Drugs industry that increased today were: Medgenics ( MDGN), up 43%, Rexahn Pharmaceuticals ( RNN), up 29.5%, EntreMed ( ENMD), up 24%, and Coronado Biosciences ( CNDO), up 20%.

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 $5.89 billion and is part of the health care sector. The company has a P/E ratio of 14.5, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 2.4% year to date as of the close of trading on Tuesday. Currently there are 11 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, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Natural Alternatives International ( NAII), down 15%, Cardiome Pharma Corporation ( CRME), down 13.2%, Telik ( TELK), down 11.3%, and Cormedix ( CRMD), down 10%, were all losers within the drugs industry with Gilead ( GILD) 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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