| Stock (Symbol) | Stock Price | |
Herbalife (HLF) |
$46 |
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| Data is as of | Expected to Report | Sector |
November 12, 2012 |
Feb 18 |
Food & Necessities |
| Sharek’s Take | ||
 Looking for a boost to your portfolio? Try Herbalife. This stock grew profits 20% last quarter yet has a P/E of only 10. Plus, you’ll like the fact HLF will underpromise and overdeliver on expectations. It’s the perfect gift for the Holidays and is bound to pay big dividends (2.6%) in 2013. Get your life together, get on board add some Herbalife to your portfolio today!On a more serious note, this stock is one of the best to own going into 2013. It has a strong chance of doubling. The P/E of only 10 makes the stock too cheap and you get paid a dividend of 2.6% while you wait. I think HLF will get a 17 P/E next year and that equates to a 70% total return on your investment. |
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| One-Year Chart | ||
 HLF was doing really well until a short-seller talked about HLF and shares tanked in early May. Months later, there’s no bad news to back up the bearish claims and HLF should be higher by now. Profit growth continues to be strong and the P/E of 10 is below HLF’s range of around 12-19 since I’ve owned the stock. |
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| Earnings Table | ||
 Last quarter, profits grew 20% on a 13% rise in sales.HLF beat the street by only 3 cents, but this estimate had increased in each of the last three quarters — solid. Annual Profit Estimates increased but not at the rate they did last quarter. Quarterly estimates tell me 20% profit growth should be attainable in 2013. Some of the figures are weak, but HLF has a history of upping estimates and beating them. |
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| Fair Value | ||
 HLF’s got huge upside through 2014. This is one of my most attractive investments. |
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| Ten-Year Chart | ||
 This stock’s been very strong and solid since 2009. HLF got ahead of itself earlier in the year when the P/E approached 20. But in my HLF 2012 Q1 research report the stock wasn’t overvalued. I have little doubt HLF will get back to the $70s. I fully expect that to happen in 2013. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
8 of 17 |
Herbalife has a P/E of 10 even though its estimated Long Term Growth Rate is 15% and it pays a 2.6% yield. Normally those stocks have a 17 P/E. HLF is extremely undervalued and offers huge upside. |
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Aggressive Growth Portfolio
6 of 9 |
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