GNC Holdings, Inc. (GNC - Free Report) has been gaining investor confidence on stellar results over an extended period. Year to date, the company’s stock has outperformed its industry. The stock has gained 11.2% against the industry’s 2.2% rise.
This leading global specialty retailer of products for health and wellness, including vitamins, minerals, and herbal supplement and sports nutrition has a market cap of $332.20 million.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for now.
Per our Zacks Style Score system, GNC Holdings has a Value Score of A, which reflects the company’s solid prospects. Our research shows that stocks with a Value Style Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
What’s Boosting the Stock?
Growing E-commerce Business
GNC Holdings’ changed e-commerce pricing and promotion strategy allowed the company to launch its entire product line on Amazon (sales from which are included in the GNC.com business unit) in January 2017.Moreover, the company is upbeat about the shift of control of the website from a third party to a cloud-based, company-controlled platform. Notably, in the second quarter of 2018, GNC Holdings witnessed a 2.8% rise in revenues from e-commerce business driven by growth in revenues from both GNC.com and Amazon Marketplace.
Expansion in International Markets
The company’s growing international business has been a major plus. Management expects to continue capitalizing on international revenue growth opportunities through the addition of franchise stores in existing markets, expansion into new high-growth markets and the growth of product distribution in both existing and new markets.
One New GNC Plan May Act as a Game Changer
In 2016, management announced several strategies to deliver improved performance in the near future. It plans to revamp its existing business model. The model, dubbed as the ‘new GNC’, would include the lower single product pricing policy, a new product pipeline, free and paid loyalty program, new customer friendly technology which includes terminals, tablets, Wi-Fi and a new mobile app that improves and personalizes the shopping experience.
From the beginning of 2017, the company has started to witness transformational changes in its operations. Per management, the new GNC Plan has been getting favorable response from customers. Management is particularly encouraged by new loyalty programs under this plan.
Other Key Picks
Other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Genomic Health and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s long-term expected earnings growth rate is 15.8%. The stock currently carries a Zacks Rank of 2.
Genomic Health’s expected earnings growth rate for the next year is 40.7%. The stock holds a Zacks Rank #2 at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
GNC Holdings, Inc. (GNC - Free Report) has been gaining investor confidence on stellar results over an extended period. Year to date, the company’s stock has outperformed its industry. The stock has gained 11.2% against the industry’s 2.2% rise.
This leading global specialty retailer of products for health and wellness, including vitamins, minerals, and herbal supplement and sports nutrition has a market cap of $332.20 million.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for now.
Per our Zacks Style Score system, GNC Holdings has a Value Score of A, which reflects the company’s solid prospects. Our research shows that stocks with a Value Style Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
What’s Boosting the Stock?
Growing E-commerce Business
GNC Holdings’ changed e-commerce pricing and promotion strategy allowed the company to launch its entire product line on Amazon (sales from which are included in the GNC.com business unit) in January 2017.Moreover, the company is upbeat about the shift of control of the website from a third party to a cloud-based, company-controlled platform. Notably, in the second quarter of 2018, GNC Holdings witnessed a 2.8% rise in revenues from e-commerce business driven by growth in revenues from both GNC.com and Amazon Marketplace.
Expansion in International Markets
The company’s growing international business has been a major plus. Management expects to continue capitalizing on international revenue growth opportunities through the addition of franchise stores in existing markets, expansion into new high-growth markets and the growth of product distribution in both existing and new markets.
One New GNC Plan May Act as a Game Changer
In 2016, management announced several strategies to deliver improved performance in the near future. It plans to revamp its existing business model. The model, dubbed as the ‘new GNC’, would include the lower single product pricing policy, a new product pipeline, free and paid loyalty program, new customer friendly technology which includes terminals, tablets, Wi-Fi and a new mobile app that improves and personalizes the shopping experience.
From the beginning of 2017, the company has started to witness transformational changes in its operations. Per management, the new GNC Plan has been getting favorable response from customers. Management is particularly encouraged by new loyalty programs under this plan.
Other Key Picks
Other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Genomic Health and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s long-term expected earnings growth rate is 15.8%. The stock currently carries a Zacks Rank of 2.
Genomic Health’s expected earnings growth rate for the next year is 40.7%. The stock holds a Zacks Rank #2 at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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