Herbalife, Inc. (HLF) recently hit a new 52-week high above $47 after shares jumped above a short-term level of resistance on strong Q4 results from late February and a bullish next-year estimate.
Fourth-Quarter Results
Shares of HLF rebounded from a key trend line after the company reported better than expected Q4 results on February 23. Sales were up 23% from last year to $630.9 million. Earnings also came in strong at 98 cents, 8% ahead of the Zacks Consensus Estimate. The company has surprised in each of the last four quarters by an average of 14%
Herbalife results were driven by strength in its Asia Pacific segment, where sales were up 34.4% from the previous year. The company also tapped two new markets, breaking into both Vietnam and Paraguay.
Estimates Up
Analysts are bullish on this Zacks #2 rank stock, with the next-year estimate projecting 14% earnings growth. With the current-year estimate pegged at $3.73, this stock has a forward P/E multiple of 12.5X, a discount to the overall market.
The Chart
Shares of HLF recently jumped above a key level of resistance just above $45 to hit a new 52-week high above $47, take a look at the chart below.
Last Week’s Momentum Zacks Rank Buy Stocks
Deere & Co. (DE) continues to pressure its 52-week high at $62.08 on rising estimates and a bullish next-year growth projection. Read Full Article.
Ulta Salon Cosmetics & Fragrance (ULTA) is pressuring its 52-week high at $23.45 after reporting better than expected Q4 results in mid March that included a 13% earnings surprise. Read Full Article.
Royal Caribbean Cruises Ltd. (RCL) recently hit a new 52-week high as the company’s earnings rebounds on a resurgent global economy and a commitment to cutting costs. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
