Chris Holden

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Will Herbalife Keep Up The Momentum In 2019?

by Chris Holden - January 15th, 2019.
Filed under: Health & Wellnes.

Herbalife Nutrition Ltd. (HLF) recorded steady volume growth annually for the past few years. The volume growth of HLF led by new product launches is expected to continue in 2019 as well. Moreover, HLF has its presence across 51 countries worldwide.

To a great degree, the growth potential of any stock is based on the sales numbers, business outlook for the subsequent quarters, and stock positions in hedge funds. Comparably, Herbalife shows strength in all parameters.

Below are some of the facts that indicate the growth potential of HLF in 2019:

Wide Array of Products:

The product range is designed individually to address specific needs of HLF’s customer base. Products are categorized into nutrition drinks, fitness, weight loss weight gain, and stamina. In turn, distributors will find it easier to suggest the products based on customer needs.

The latest launch includes “Iced Coffee” which is high in proteins. The Iced coffee is launched to replace the traditional coffee among its customers.

HLF is very keen on retaining its existing customers and adding new customers to its book. The sales push will continue to zoom with the support of a significant distribution network across the globe.


Impact of Currency Movements:

Due to the global presence, the currency movements may affect HLF’s revenue adversely. Additionally, the competition is also getting tougher with other retailers. However, HLF stock price registered a 68.7% surge in the year 2018, whereas the industry has registered a decline of 0.1%.

Statistically, HLF grew well in the past years and expected to keep up the numbers in the approaching months. Herbalife recorded double-digit growth in sales volume in four out of five major markets across the globe.

Increase in the Hedge Funds Position:

At the end of the second quarter of 2018, 30 Hedge funds had holdings with HLF. Surprisingly, at the end of the third quarter, 38 Hedge funds were having positions with HLF. Considerably, this shows the conviction level of hedge fund managers towards Herbalife.

Historically, top picks by the elite category hedge funds tend to outperform S&P 500 on a routine basis. Evidently, the increase in the interest among hedge fund managers shows the cue to the growth of Herbalife in the year 2019.


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