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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Herbalife ( HLF) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.5%. By the end of trading, Herbalife rose $2.20 (3.4%) to $67.71 on average volume. Throughout the day, 4,078,886 shares of Herbalife exchanged hands as compared to its average daily volume of 3,187,200 shares. The stock ranged in a price between $66.13-$68.82 after having opened the day at $66.32 as compared to the previous trading day's close of $65.51. Other companies within the Consumer Goods sector that increased today were: Coldwater Creek ( CWTR), up 13.7%, China Automotive Systems ( CAAS), up 12.8%, Elecsys Corporation ( ESYS), up 11.5% and SkyPeople Fruit Juice ( SPU), up 10.0%.

See "Document Management" for notes from Lehman Small Cap Conference in 11/2006. Herbalife has a market cap of $6.6 billion and is part of the consumer non-durables industry. Shares are up 93.5% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Herbalife a buy, no analysts rate it a sell, and 1 rates 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, expanding profit margins and good cash flow from operations. 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, Agria Corporation ( GRO), down 7.8%, Tianli Agritech ( OINK), down 7.1%, ConAgra Foods ( CAG), down 6.0% and PVH ( PVH), down 5.6% , were all laggards within the consumer goods sector with Lululemon Athletica ( LULU) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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