The COVID-19 crisis has significantly increased health awareness among individuals, including in response to physical inactivity caused by distant lifestyles and mandatory protective regimes.
As the number of health conscious people grow – many are rethinking what they are eating and adopting healthier eating habits – the demand for nutritional products is increasing. With the distant lifestyle expected to continue in the post-pandemic world, food companies are expected to continue to thrive.
Nutritional stocks Herbalife Nutrition Ltd. (HLF) and Nu Skin Enterprises, Inc. (NUS) saw higher sales volumes for the last quarter. Their sales growth was mainly driven by the products they launched over the past year. With the food industry expected to grow significantly in the coming months, we expect these stocks to hit new highs soon.
Herbalife Nutrition Ltd. (HLF)
Founded in 1980, HLF is a global nutrition company. The company operates in six geographic segments: North America, Mexico, South and Central America, Europe, the Middle East and Africa (EMEA), Asia Pacific and China. HLF’s products are divided into five groups: weight management, targeted nutrition, energy, exercise and fitness, external nutrition and literature, advertising and others.
On March 1st, HLF appointed three new independent members to its Board of Directors – Sophie L’Helias, Kevin M. Jones and Don Mulligan. The company launched an immersive ARIA 360 AR fan experience in late January in partnership with LA Galaxy. On January 14, it announced that its innovation and manufacturing facilities in Winston-Salem, North Carolina and Lake Forest, California had received ISO 45001 occupational safety standard from NSF-ISR. The company also launched its protein and baked goods mix in January.
HLF net sales increased 15.6% year over year to $ 1.41 billion for the fourth quarter ended December 31, 2020. This is the largest fourth quarter net sales in the company’s history. Revenue in the North America segment rose almost 33% year over year to USD 310.50 million. Gross profit increased 11.2% year over year to $ 1.10 billion. Net income was $ 73.8 million, up 30.2% year over year.
A consensus-based EPS estimate of $ 1.29 for the quarter ended June 30, 2021 represents an improvement of 35.8% year over year. Additionally, HLF has outperformed consensus-based EPS estimates for three of the past four quarters. A consensus estimate of $ 1.50 billion for the quarter represents an increase of 15.5% year over year. The stock is up 35.6% over the past year, closing yesterday’s trading session at $ 46.52.
HLF’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of A, which is a strong buy on our proprietary rating system. The POWR ratings are calculated taking into account 118 different factors, with each factor being optimally weighted.
The share has a grade of A for value and quality and a grade of B for growth. We also rated HLF based on stability, feeling and dynamism. click Here to access all HLF ratings.
HLF is number 4 of 12 stocks in the B rating Medicine – Consumer Goods Industry.
Nu Skin Enterprises, Inc. (Naked)
Based in Provo, Utah, NUS develops and sells personal care and wellness products worldwide. The company sells its products under the Nu Skin, Pharmanex and ageLOC brands. NUS operates in seven geographic segments – Mainland China, South Korea, Southeast Asia, Americas / Pacific, Hong Kong / Taiwan, Europe, Middle East and Africa (EMEA), and Japan, and in two operating segments – Manufacturing and Grow Tech.
NUS was selected in February 2021 Ryan Napierski to his blackboard from Directors and typed he becomes the company’s next president and CEO Effective September 1, 2021, the current CEO of NUS, Ritch Wood, is expected to retire. The board of directors of NUS has also approved a quarterly cash dividend of $ 0.38 per share payable on March 10, 2021. The company also announced the acquisition of 3i Solutions on January 26th.
The company’s fourth quarter revenue increased 28.3% year over year to $ 748.19 million. Operating income was $ 88.70 million, 62.2% higher than the prior year. Gross profit increased nearly 25% year over year to $ 553.44 million. Net income increased 83.2% year over year to $ 73.47 million. Earnings per share increased 94.4% year over year to $ 1.40.
A consensus-based EPS estimate of $ 0.71 for the current quarter ended March 31, 2021 represents an improvement of 97.2% year over year. NUS also outperformed EPS consensus estimates for each of the past four quarters. A consensus revenue estimate of $ 633.67 million for the current quarter represents an increase of 22.3% year over year. The stock gained 108.7% over the past year, closing yesterday’s trading session at $ 51.66.
NUS’s strong fundamentals are reflected in the POWR ratings. The stock has an overall rating of A, which is a strong buy on our proprietary rating system.
The share has a grade of A for value and quality and a grade of B for growth. We also rated NUS on the basis of stability, feeling and dynamism. click Here to access all NUS reviews.
NUS is number 5 in the same industry.
The POWR ratings are calculated taking into account 118 different factors, with each factor being optimally weighted.
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HLF shares were unchanged after close of trading on Wednesday. Since the beginning of the year, HLF is down -3.73%, while the benchmark index S&P 500 has increased by 2.02% over the same period.
About the author: Sweta Vijayan
Sweta is an investment analyst and journalist with a particular interest in identifying market inefficiencies. She is passionate about training investors so that they can thrive in the stock market. More…
