Bull Of The Day: Herbalife (HLF)

Core Viewpoint - Herbalife (HLF) is experiencing a resurgence in attention and performance, highlighted by its strong earnings and positive revisions in estimates, making it a strong buy according to Zacks Rank [1]. Company Overview - Herbalife Ltd. is a holding company focused on health and wellness products, operating in North America, Latin America, EMEA, Asia Pacific, and China. The company was founded in February 1980 and is headquartered in Los Angeles, CA [2]. Earnings History - Herbalife has achieved four consecutive earnings beats against the Zacks Consensus Estimate, with an average positive earnings surprise of 133% over the last year. The latest earnings report showed a profit of $0.59, exceeding the consensus estimate of $0.40 by 19 cents, resulting in a positive surprise of 47.5% [4]. Earnings Estimates Revisions - Earnings estimates for Herbalife have been revised upwards, with the full year 2025 estimate increasing from $1.74 to $1.91 in the last 30 days. The 2026 estimate also saw a slight increase from $2.26 to $2.30 during the same period [5]. Valuation - The forward price-to-earnings (PE) ratio for Herbalife is 3.5x, which is considered low but reasonable given the recent growth contraction. The price-to-sales ratio stands at 0.14x, which may be undervalued if the company continues to show solid revenue growth. Additionally, margins have improved over the last three quarters, increasing from 3.8% to 4% to 4.23% in the most recent quarter [6].