Back to top

Image: Bigstock

Bull Of The Day: Herbalife (HLF)

Read MoreHide Full Article

Herbalife (HLF - Free Report) is a Zacks Rank #1 (Strong Buy) that has an A for Value and a D for Growth.  A few years this stock saw wall to wall coverage as Bill Ackman held a sizeable short position in company and made a public spectacle when he and another billionaire debated on live TV.  It has been a long time since HLF demanded that much attention, but it looks like they are back on the right path. Let’s explore more about why this stock is the Bull of the Day.

Description                      

Herbalife Ltd. is a holding company, which engages in the provision of health and wellness products. It operates through the following geographical segments: North America, Latin America, EMEA, Asia Pacific, and China. The company was founded by Mark Reynolds Hughes in February 1980 and is headquartered in Los Angeles, CA.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

Herbalife (HLF - Free Report) has posted four consecutive beats of the Zacks Consensus Estimate.  The takeaway from the earnings history is that the company has an average positive earnings surprise of 133% over the last year.

The most recent earnings print saw the company post $0.59 when the consensus was at $0.40.  That 19 cent beat translates into a positive earnings surprise of 47.5%.

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates are moving higher for Herbalife (HLF - Free Report) .

The full year 2025 has seen a big move, going from $1.74 to $1.91 over the last 30 days.

2026 saw a move higher as well, going from $2.26 to $2.30 over the same period.

Valuation

The forward PE of 3.5x is which is very low, but reasonable given the growth contraction the company posted in the most recent quarter.  Price to sales at 0.14x could prove to be rather low if the company continues to post solid revenue growth.

Margins have been improving over the last three quarters going from 3.8% to 4% to 4.23% in the most recent quarter.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Herbalife Ltd (HLF) - free report >>

Published in