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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Herbalife ( HLF) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day down 0.9%. By the end of trading, Herbalife rose 47 cents (1.3%) to $35.54 on heavy volume. Throughout the day, 20.3 million shares of Herbalife exchanged hands as compared to its average daily volume of 8.8 million shares. The stock ranged in a price between $30.84-$35.90 after having opened the day at $31.59 as compared to the previous trading day's close of $35.07. Other companies within the Drugs industry that increased today were: Hyperion Therapeutics ( HPTX), up 17.5%, Cleveland BioLabs ( CBLI), up 12.6%, Rexahn Pharmaceuticals ( RNN), up 12.1%, and iBio ( IBIO), up 10.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $3.92 billion and is part of the health care sector. The company has a P/E ratio of 9.4, below the S&P 500 P/E ratio of 17.7. Shares are up 10.3% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Herbalife a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Herbalife as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Bioline Rx ( BLRX), down 16.4%, Celsion Corporation ( CLSN), down 11.4%, Idera Pharmaceuticals ( IDRA), down 9.6%, and Keryx Biopharmaceuticals ( KERX), down 7.7%, were all laggards within the drugs industry with Allergan ( AGN) being today's drugs industry laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

One of the Most Recognized Hedge Fund Managers Has Had a Terrible Year

Beleaguered Hedge Fund Titan Bill Ackman Is Having Another Rough Year

With Eyes on Solar Eclipse, Wall Street Stumbles Yet Again