Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5981
    -0.0024 (-0.41%)
     
  • NZD/EUR

    0.5532
    -0.0011 (-0.19%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    82.31
    +0.96 (+1.18%)
     
  • GOLD

    2,228.10
    +15.40 (+0.70%)
     
  • NASDAQ

    18,270.29
    -10.55 (-0.06%)
     
  • FTSE

    7,959.16
    +27.18 (+0.34%)
     
  • Dow Jones

    39,729.90
    -30.18 (-0.08%)
     
  • DAX

    18,491.94
    +14.85 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.3940
    -0.3860 (-0.43%)
     

What Is Herbalife Nutrition Ltd.'s (NYSE:HLF) Share Price Doing?

While Herbalife Nutrition Ltd. (NYSE:HLF) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price increase on the NYSE over the last few months. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Herbalife Nutrition’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Herbalife Nutrition

Is Herbalife Nutrition Still Cheap?

Good news, investors! Herbalife Nutrition is still a bargain right now. According to my valuation, the intrinsic value for the stock is $27.70, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Herbalife Nutrition’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Herbalife Nutrition?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Herbalife Nutrition, it is expected to deliver a negative earnings growth of -3.6%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although HLF is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to HLF, or whether diversifying into another stock may be a better move for your total risk and return.

ADVERTISEMENT

Are you a potential investor? If you’ve been keeping an eye on HLF for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about Herbalife Nutrition as a business, it's important to be aware of any risks it's facing. For example, Herbalife Nutrition has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

If you are no longer interested in Herbalife Nutrition, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here