Herbalife Ltd. (HLF): Today's Featured Drugs 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 Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.5%. By the end of trading, Herbalife rose $1.79 (2.6%) to $70.75 on light volume. Throughout the day, 2,039,935 shares of Herbalife exchanged hands as compared to its average daily volume of 3,587,500 shares. The stock ranged in a price between $68.87-$71.86 after having opened the day at $69.17 as compared to the previous trading day's close of $68.96. Other companies within the Drugs industry that increased today were: Pacific Biosciences of California ( PACB), up 72.8%, GW Pharmaceuticals PLC ADR ( GWPH), up 63.1%, Oncothyreon ( ONTY), up 21.1% and Merus Labs International ( MSLI), up 16.5%.

Herbalife Ltd., through its subsidiaries, produces and distributes 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 $7.1 billion and is part of the consumer goods sector. Shares are up 109.7% year to date as of the close of trading on Tuesday. 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, Genvec ( GNVC), down 16.7%, KaloBios Pharmaceuticals ( KBIO), down 15.2%, AMAG Pharmaceuticals ( AMAG), down 14.3% and Clovis Oncology ( CLVS), down 11.6% , were all laggards within the drugs industry with Gilead ( GILD) 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).

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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