Herbalife Ltd. (HLF): Today's Featured Consumer Non-Durables Laggard

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 Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Herbalife fell $1.07 (-1.5%) to $68.60 on light volume. Throughout the day, 1,708,833 shares of Herbalife exchanged hands as compared to its average daily volume of 2,732,100 shares. The stock ranged in price between $68.30-$70.23 after having opened the day at $69.85 as compared to the previous trading day's close of $69.67. Other companies within the Consumer Non-Durables industry that declined today were: Lululemon Athletica ( LULU), down 11.7%, Verso Paper ( VRS), down 9.5%, American Apparel ( APP), down 5.2% and Delta Apparel ( DLA), down 3.3%.

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 $7.4 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.0, below the S&P 500 P/E ratio of 17.7. Shares are up 121.0% year to date as of the close of trading on Wednesday. Currently there are 6 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, 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 positive front, Oxford Industries ( OXM), up 5.2%, AEP Industries ( AEPI), up 4.5%, Tandy Brands Accessories ( TBAC), up 3.9% and Superior Uniform Group ( SGC), up 3.7% , were all gainers within the consumer non-durables industry with Ralph Lauren ( RL) being today's featured consumer non-durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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