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NBTY Inc. (NTY) saw sales rise 7% for the fiscal third quarter and saw the sales growth continue into the month of July as consumers stayed on a health kick. NBTY is still a value stock, with a forward P/E of 14.4.

NBTY manufactures and distributes nutritional supplements in the United States and around the globe through retail stores, its website and wholesale.

The company offers 25,000 products under the name brands Vitamin World, Puritan's Pride, Holland & Barrett, Rexall, Sundown, Worldwide Sport Nutrition and GNC (UK), among others.

NBTY Surprised By 27% in the Fiscal Third Quarter

On July 28, NBTY reported fiscal third quarter results and surprised on the Zacks Consensus by 22 cents. Earnings per share were $1.03 compared to the consensus of 81 cents.

Sales rose 7% to $696 million from $652 million in the year ago quarter. All segments saw sales growth, with the Wholesale/US Nutrition division leading the divisions with a 10% increase to $435 million.

However, the company continued to see pressure from private label competition and expects this pressure to continue for the remainder of the year.

E-commerce saw a 7% increase and both retail segments, North America and Europe, saw increases of 3% and 1%, respectively. In North America, same store sales growth was 2%.

July Sales Climb 9%

On Aug 9, NBTY announced July monthly sales which jumped 9%. Again, it was led by the Wholesale/US Nutrition division which saw a 13% gain in the month.

North American retail also showed strength, gaining 10% while European retail was flat.

Zacks Consensus Estimates Rise

Analysts raised fiscal 2010 estimates after the big third quarter beat.

The full year consensus jumped 21 cents to $3.76 per share in the last month. Analysts expect earnings growth of 55% in fiscal 2010.

The outlook for fiscal 2011 isn't quite as bullish as earnings growth is forecast to be just 1.3%.

Still Has Value Fundamentals

In addition to a P/E which is less than 15, NBTY has a price-to-book ratio of 2.6, which is also well within value parameters.

The company has a stellar 1-year return on equity (ROE) of 20.1%, which easily trumps the industry average of 14.3%.

NBTY is now a Zacks #2 Rank (buy) stock.

Read the Mar 3, 2010 article.

Update to Previous Value Zacks Rank Buy Stocks

Lithia Motors, Inc. (LAD) has raised 2010 guidance twice this year as car sales have taken off. LAD is a rare value stock which also has growth as its PEG ratio stands at just 0.6. Read the full article.

HealthSpring Inc. (HS) is cheap as it trades at just 5.7x forward estimates. Yet the company just surprised on estimates for the fourth quarter in a row. Read the full article.

Trina Solar Limited (TSL) recently saw second quarter revenue rise 147% as shipments were higher than expected. TSL is trading at just 10.7x forward estimates. Read the full article.

The Finish Line, Inc. (FINL) has been cashing in on the hot shoe market as it has surprised on estimates the last 4 quarters by an average of 49.7%. The stock isn't very expensive, trading at just 10.5x forward estimates when the industry trades at 14x. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

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