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 down 3.5%. By the end of trading, Herbalife rose $4.65 (7.2%) to $69.02 on heavy volume. Throughout the day, 8,789,791 shares of Herbalife exchanged hands as compared to its average daily volume of 3,428,100 shares. The stock ranged in a price between $62.13-$69.02 after having opened the day at $67.56 as compared to the previous trading day's close of $64.37. Other companies within the Drugs industry that increased today were: Lifevantage Corporation ( LFVN), up 8.9%, IntelliPharmaCeutics International ( IPCI), up 8.1%, Ohr Pharmaceutical ( OHRP), up 7.0% and Redhill Biopharma ( RDHL), up 6.8%.

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 $6.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are down 18.2% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Herbalife a buy, no analysts rate it a sell, and none 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, 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 negative front, Oramed Pharmaceuticals ( ORMP), down 24.1%, Galena Biopharma ( GALE), down 19.9%, Vanda Pharmaceuticals ( VNDA), down 16.0% and PTC Therapeutics ( PTCT), down 14.5% , were all laggards within the drugs industry with Merck ( MRK) 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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