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Medifast (MED) Looks Appetizing, OPTAVIA Solution a Key Upside
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Medifast, Inc. (MED - Free Report) is in solid shape, largely gaining from strength in its OPTAVIA lifestyle solution and coaching support system. Apart from this, the company’s solid growth-oriented efforts have been aiding. The impact of these upsides was evident in first-quarter 2021, wherein both earnings and sales saw significant year-over-year growth. Also, both metrics cruised past their respective Zacks Consensus Estimate.
We note that consumers’ increased inclination toward health, together with a solid OPTAVIA coach-based model, has been helping Medifast draw new clients. Notably, the company remains committed to making further investments to improve its infrastructure in order to aid growth. Markedly, Medifast offered 2021 guidance, which suggests year-over-year earnings and sales growth. Management anticipates revenues for 2021 to come in the range of $1.4-$1.475 billion. Full-year earnings per share are envisioned to be $12.69-$14.14. In full-year 2020, revenues and earnings per share came in at $934.8 million and $9.14, respectively.
Strength in OPTAVIA
Given the evolving consumer interests in health and wellness, Medifast’s OPTAVIA lifestyle solution and coaching support system bodes well. OPTAVIA follows a holistic approach by focusing on six key areas of a human being, namely weight, eating and hydration, motion, sleep, mind, and surroundings. Further, OPTAVIA combines scientifically proven programs, effective products and guidance from its coaches to help consumers lead a healthier lifestyle. Markedly, OPTAVIA-branded products formed 88.9% of consumable units sold in the first quarter of 2021, up from 79% in the preceding quarter. Incidentally, total active earning OPTAVIA coaches jumped 61% to 52,500. Further, average revenue per active earning OPTAVIA coach came in at $6,454, up from $5,333 in the same period last year. We note that the company’s constant focus on developing tools and programs to increase the efficiency of coaches has been yielding results.
Other Growth Endeavors
Medifast, which shares space with Darling Ingredients (DAR - Free Report) , Nomad Foods (NOMD - Free Report) and Celsius Holdings (CELH - Free Report) , has been undertaking a number of measures to drive growth, even amid the coronavirus outbreak. The company has been speeding up its long-term supply-chain efforts to ensure that it is able to manage the expected growth in the next few years. To this end, Medifast is focused on optimizing and increasing capacity by strengthening its network of co-manufacturers. This is likely to help the company meet 2021 demand and provide it a manufacturing capacity of $2 billion. Further, the company is expanding its distribution network via expansions in existing facilities, along with building on current 3PL relationships and alliances to set up a distribution system, which is in line with its manufacturing capacity.
Apart from these, Medifast is focused on making technological investments, as part of which it opened a new technology center in Utah in 2020 beginning. We note that OPTAVIA coaches have been focused on utilizing technology, including the company’s own app-based platforms, along with social media channels and field-led training platforms. Gains from these efforts were witnessed in the first quarter. Certainly, Medifast’s focus on the development of a digital-first approach seems to be yielding results. The company’s constant investments in digital tools, as well as in its new, fully integrated mobile apps are likely to enhance the connection between clients and coaches.
All said, we believe that the relevance of the company’s offerings amid an environment where consumers are choosing health and wellness options are likely to continue working well.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Medifast (MED) Looks Appetizing, OPTAVIA Solution a Key Upside
Medifast, Inc. (MED - Free Report) is in solid shape, largely gaining from strength in its OPTAVIA lifestyle solution and coaching support system. Apart from this, the company’s solid growth-oriented efforts have been aiding. The impact of these upsides was evident in first-quarter 2021, wherein both earnings and sales saw significant year-over-year growth. Also, both metrics cruised past their respective Zacks Consensus Estimate.
We note that consumers’ increased inclination toward health, together with a solid OPTAVIA coach-based model, has been helping Medifast draw new clients. Notably, the company remains committed to making further investments to improve its infrastructure in order to aid growth. Markedly, Medifast offered 2021 guidance, which suggests year-over-year earnings and sales growth. Management anticipates revenues for 2021 to come in the range of $1.4-$1.475 billion. Full-year earnings per share are envisioned to be $12.69-$14.14. In full-year 2020, revenues and earnings per share came in at $934.8 million and $9.14, respectively.
Strength in OPTAVIA
Given the evolving consumer interests in health and wellness, Medifast’s OPTAVIA lifestyle solution and coaching support system bodes well. OPTAVIA follows a holistic approach by focusing on six key areas of a human being, namely weight, eating and hydration, motion, sleep, mind, and surroundings. Further, OPTAVIA combines scientifically proven programs, effective products and guidance from its coaches to help consumers lead a healthier lifestyle. Markedly, OPTAVIA-branded products formed 88.9% of consumable units sold in the first quarter of 2021, up from 79% in the preceding quarter. Incidentally, total active earning OPTAVIA coaches jumped 61% to 52,500. Further, average revenue per active earning OPTAVIA coach came in at $6,454, up from $5,333 in the same period last year. We note that the company’s constant focus on developing tools and programs to increase the efficiency of coaches has been yielding results.
Other Growth Endeavors
Medifast, which shares space with Darling Ingredients (DAR - Free Report) , Nomad Foods (NOMD - Free Report) and Celsius Holdings (CELH - Free Report) , has been undertaking a number of measures to drive growth, even amid the coronavirus outbreak. The company has been speeding up its long-term supply-chain efforts to ensure that it is able to manage the expected growth in the next few years. To this end, Medifast is focused on optimizing and increasing capacity by strengthening its network of co-manufacturers. This is likely to help the company meet 2021 demand and provide it a manufacturing capacity of $2 billion. Further, the company is expanding its distribution network via expansions in existing facilities, along with building on current 3PL relationships and alliances to set up a distribution system, which is in line with its manufacturing capacity.
Apart from these, Medifast is focused on making technological investments, as part of which it opened a new technology center in Utah in 2020 beginning. We note that OPTAVIA coaches have been focused on utilizing technology, including the company’s own app-based platforms, along with social media channels and field-led training platforms. Gains from these efforts were witnessed in the first quarter. Certainly, Medifast’s focus on the development of a digital-first approach seems to be yielding results. The company’s constant investments in digital tools, as well as in its new, fully integrated mobile apps are likely to enhance the connection between clients and coaches.
All said, we believe that the relevance of the company’s offerings amid an environment where consumers are choosing health and wellness options are likely to continue working well.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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