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 0.8%. By the end of trading, Herbalife rose $1.47 (3.1%) to $48.33 on average volume. Throughout the day, 2,810,054 shares of Herbalife exchanged hands as compared to its average daily volume of 2,394,500 shares. The stock ranged in a price between $46.87-$49.27 after having opened the day at $47.00 as compared to the previous trading day's close of $46.86. Other companies within the Drugs industry that increased today were: Codexis ( CDXS), up 25.4%, Delcath Systems ( DCTH), up 14.9%, Cormedix ( CRMD), up 10.0% and Cardium Therapeutics ( CXM), up 9.7%.
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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 $4.7 billion and is part of the health care sector. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Shares are up 42.3% year to date as of the close of trading on Thursday. 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, Biota Pharmaceuticals ( BOTA), down 67.9%, Mast Therapeutics ( MSTX), down 30.9%, Cempra ( CEMP), down 13.9% and Celsion Corporation ( CLSN), down 13.3% , were all laggards within the drugs industry with Amgen ( AMGN) 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).

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