Back to top

Image: Bigstock

Can Medifast Overcome GLP-1 Pressure With Its Growth Strategy?

Read MoreHide Full Article

Key Takeaways

  • MED emphasizes metabolic health as GLP-1 drugs reshape weight-loss and wellness trends.
  • Clinical results show 98% lean mass retention and 14% visceral fat reduction in 16-week programs.
  • Digital tools, Premier plus pricing and EDGE coaching aim to boost retention and support 2026 growth.

Medifast, Inc. (MED - Free Report) recognizes that the weight-loss and wellness landscape has evolved quickly as GLP-1 drugs gain wider adoption, reshaping how obesity and health are viewed by offering an effective way to suppress appetite and lose weight. While powerful, GLP-1 therapies are not enough for long-term health, as most weight-related challenges come from poor metabolic health that medication alone cannot fix.

Studies show that up to 40% of weight lost on GLP-1 medications comes from muscle, while nearly 74% of users stop treatment within a year, often regaining much of the weight. This creates a real opportunity for Medifast to help restore natural metabolic function. With more than 90% of U.S. adults being unhealthy metabolically, the company addresses a major public health challenge and a rare chance to redefine long-term wellness.

Medifast is positioning itself as a leader in metabolic health, with its growth strategy focused on “metabolic synchronization,” an approach aimed at reversing metabolic dysfunction. Clinical results show targeted fat loss with better body composition: at 16 weeks, participants kept 98% of lean mass, cut visceral fat by 14%, and preserved muscle while improving metabolic health. The program supports clients using GLP-1s, transitioning off them, or not using them, offering a complete, long-term foundation for healthier living.

The company also continues to invest in its digital platforms, improving its app and reporting tools to better track client progress and coach performance. Along with simplified Premier+ pricing and the EDGE leadership program, these efforts help boost retention, increase productivity and strengthen coach stability, with early signs of sustained success heading into 2026.

Medifast’s focus on metabolic health, digital enablement and coach-led support positions it to complement or extend beyond GLP-1 use, creating a differentiated, sustainable growth path despite evolving weight-loss dynamics.

Zacks Rundown for MED

Medifast’s shares have lost 14.1% in the past six months compared with the industry’s decline of 9.8%. MED currently carries a Zacks Rank #4 (Sell).

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.38, lower than the industry’s average of 1.06.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for MED’s current and next fiscal-year earnings implies year-over-year declines of 158.7% and 5.6%, respectively.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Better-Ranked Stocks to Consider

The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Monster Beverage Corporation (MNST - Free Report) engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for Monster Beverage's current fiscal-year sales and earnings implies growth of 9.6% and 22.2%, respectively, from the year-ago actuals. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.

United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.

Published in