| Stock (Symbol) | Stock Price | |
GNC Holdings (GNC) |
$60 |
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| Data is as of | Expected to Report | Sector |
November 6, 2013 |
Feb 2 – Feb 14 |
Food & Necessities |
| Sharek’s Take | ||
 GNC (GNC) is such a sound investment. Company management is some of the best in the business. Profits are split three ways: to pay a dividend, to buy back stock, and to open new locations. The stock’s capable of delivering 20% annual growth and is selling for only 17 times earnings. I see investors warming up to GNC shares and pushing the P/E to 23 in 2014. There’s solid upside in this sound investment. |
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| One-Year Chart | ||
 GNC shares have almost doubled in the last year, but the stock’s not extended here. GNC’s P/E was only 13 a year ago, and that was too cheap. I love the fact this stock has a P/E of only 17 yet profit growth should hit 30% the next couple of quarters. |
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| Earnings Table | ||
 Profit’s increased 25% last quarter on only a 9% increase in sales. That’s the second straight quarter of 9% sales growth.GNC only met earnings estimates, but that was fine because profit growth was a solid 25%.
Annual Profit Estimates edged ahead slightly. GNC’s customer reward program Member Price continues boost profits. Quarterly growth looks great for the next year, and I think this will push up GNC’s P/E. |
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| Fair Value | ||
 GNC is selling for 21 times 2013 earnings, but only 17 times next year’s earnings. I see the P/E rising to 23 and that gives the stock good upside for 2014. |
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| Ten-Year Chart | ||
 This ten-year chart shows a stock that’s a bit extended. But I think that’s because GNC had a P/E of only 13 a year ago and the stock had some catching up to do. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 24 |
For the past month or so I was high on Chinese Internet stocks. Now that the Chinese stocks have risen, I feel sound investments like GNC are safer investments. 34% upside for 2014 is great considering GNC is such a stable company. GNC is ranked 4th in both the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
4 of 10 |
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