Herbalife Ltd. (HLF): Today's Featured Health Care 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 Health Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.3%. By the end of trading, Herbalife rose $0.65 (1.5%) to $43.66 on light volume. Throughout the day, 1,417,040 shares of Herbalife exchanged hands as compared to its average daily volume of 3,831,400 shares. The stock ranged in a price between $42.65-$43.94 after having opened the day at $43.52 as compared to the previous trading day's close of $43.01. Other companies within the Health Care sector that increased today were: Affymax ( AFFY), up 25.2%, Alexza Pharmaceuticals ( ALXA), up 22.1%, ICU Medical ( ICUI), up 12.7% and Clovis Oncology ( CLVS), up 12.4%.
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Herbalife Ltd., a network marketing company, sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide. Herbalife has a market cap of $4.4 billion and is part of the drugs industry. The company has a P/E ratio of 10.0, below the S&P 500 P/E ratio of 17.7. Shares are up 30.6% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Herbalife a buy, no analysts rate it a sell, and 2 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, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Oculus Innovative ( OCLS), down 16.0%, Synta Pharmaceuticals ( SNTA), down 13.4%, Cormedix ( CRMD), down 12.5% and Coronado Biosciences ( CNDO), down 10.2% , were all laggards within the health care sector with Endo Health Solutions ( ENDP) being today's health care sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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