Nutrisystem, Inc. continued with its hot streak as it beat the Zacks Consensus Estimate by 20% in the Fourth Quarter. This Zacks Rank #1 (Strong Buy) is expected to see double digit revenue growth again in 2017.

Nutrisystem is famous for weight loss programs including Nutrisystem Lean13 program, designed to deliver weight loss of up to 13 pounds in the first month. The company also has other branded weight-loss products including Fast 5 and Turbo 10 as well as multi-day kits sold at select retail outlets.

Feeding on the healthy food frenzy sweeping the nation, the company's meal choices including 100 foods which do not contain artificial preservatives or flavors.

Plans can also be customized for specialized diets, including those with Type 2 diabetes or pre-diabetes.

Launching the South Beach Diet in 2017

Nutrisystem acquired the South Beach brand in 2015 and formally launched its new South Beach Diet in January 2017 at the start of what is commonly known as "diet season". That's the time of the year when everyone is making their New Year's resolutions and dieting is a big part of that.

It expects the momentum it got in 2016 to continue in 2017.

In 2016, total revenue rose 18% to $545.5 million from $462.6 million.

Beat Again in the Fourth Quarter

On Feb 27, Nutrisystem reported its fourth quarter results and beat the Zacks Consensus Estimate again. It reported $0.29 versus the consensus of $0.24.

It has beat every quarter over the last 4 years except for one.

Bullish on 2017

Despite double digit revenue gains in 2016, Nutrisystem believes it can do it again as it guided full year revenue growth in the range of $630 to $650 million. That's another 18% earnings growth again in 2017.

The analysts are also bullish. 2 estimates were raised for 2017 after the report pushing the Zacks Consensus up to $1.49 from $1.38. That's earnings growth of 20.7%.

2018 is also looking strong with 2018 estimates rising as well. Analysts expect another 25% earnings growth in 2017.

Shares Hit New Highs

After such bullish guidance, the shares hit new 5-year highs.

While the growth is there, you don't get it cheaply. The forward P/E is now 33.

However, Nutrisystem does pay a dividend, currently yielding 1.4%, which is unusual for a growth stock.

For investors looking for a high growth name in the fast growing health and wellness category, Nutrisystem is one to keep on the short list.

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