We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GNC Holdings' Global Prospects Solid, Competition Stiff
Read MoreHide Full Article
On May 2, we issued an updated research report on GNC Holdings, Inc. (GNC - Free Report) . We are upbeat about the company’s strategies to strengthen international presence. However, cut-throat competition continues to pose a challenge. The stock currently carries a Zacks Rank #3 (Hold).
This leading global specialty retailer of products for health and wellness, including vitamins, minerals, herbal supplement, sports nutrition and diets, has been underperforming its industry over the past year. The company has lost 50.9% compared with the 21.4% decline of the industry.
GNC Holdings exited the first quarter of 2018 on a dismal note with year-over-year decline in adjusted earnings and revenues. Additionally, in the United States, GNC Holdings competes with heavily advertised national brands of large pharmaceutical and food companies as well as other retailers. This leads to increased price competition for the company as more participants are entering the market.
On a positive note, GNC Holdings’ international business has been a key driver of growth in recent years. 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.
In this regard, GNC Holdings recently announced the receipt of Hayao shareholders’ vote for the strategic partnership and China joint venture agreement with Harbin Pharmaceutical Group Holding (Hayao). Further, the company recently entered into a master franchise agreement with Rapid Nutrition to foray into Australia.
At the same time, GNC Holdings has announced plans to expand presence in India where it operates in collaboration with the master franchise partner — Guardian Healthcare Services Pvt. Ltd. All these developments help boost investors’ faith in the stock.
Also, the company has progressed significantly through its e-commerce business. Per management, e-commerce business continues to grow higher than expected. Moreover, the company is upbeat about the shift of control of the website from a third party to a cloud-based, company-controlled platform.
Key Picks
A few better-ranked stocks in the broader medical sector are Intuitive Surgical (ISRG - Free Report) , The Cooper Companies, Inc. (COO - Free Report) and Baxter International Inc. (BAX - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), The Cooper Companies and Baxter carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term expected earnings growth rate of 12.1%.
The Cooper Companies has long-term expected earnings growth rate of 10.8%.
Baxter International has a long-term expected earnings growth rate of 13.4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
GNC Holdings' Global Prospects Solid, Competition Stiff
On May 2, we issued an updated research report on GNC Holdings, Inc. (GNC - Free Report) . We are upbeat about the company’s strategies to strengthen international presence. However, cut-throat competition continues to pose a challenge. The stock currently carries a Zacks Rank #3 (Hold).
This leading global specialty retailer of products for health and wellness, including vitamins, minerals, herbal supplement, sports nutrition and diets, has been underperforming its industry over the past year. The company has lost 50.9% compared with the 21.4% decline of the industry.
GNC Holdings exited the first quarter of 2018 on a dismal note with year-over-year decline in adjusted earnings and revenues. Additionally, in the United States, GNC Holdings competes with heavily advertised national brands of large pharmaceutical and food companies as well as other retailers. This leads to increased price competition for the company as more participants are entering the market.
On a positive note, GNC Holdings’ international business has been a key driver of growth in recent years. 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.
In this regard, GNC Holdings recently announced the receipt of Hayao shareholders’ vote for the strategic partnership and China joint venture agreement with Harbin Pharmaceutical Group Holding (Hayao). Further, the company recently entered into a master franchise agreement with Rapid Nutrition to foray into Australia.
At the same time, GNC Holdings has announced plans to expand presence in India where it operates in collaboration with the master franchise partner — Guardian Healthcare Services Pvt. Ltd. All these developments help boost investors’ faith in the stock.
Also, the company has progressed significantly through its e-commerce business. Per management, e-commerce business continues to grow higher than expected. Moreover, the company is upbeat about the shift of control of the website from a third party to a cloud-based, company-controlled platform.
Key Picks
A few better-ranked stocks in the broader medical sector are Intuitive Surgical (ISRG - Free Report) , The Cooper Companies, Inc. (COO - Free Report) and Baxter International Inc. (BAX - Free Report) . While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), The Cooper Companies and Baxter carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term expected earnings growth rate of 12.1%.
The Cooper Companies has long-term expected earnings growth rate of 10.8%.
Baxter International has a long-term expected earnings growth rate of 13.4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>