10 Best Single Digit Stocks To Buy Now

8. Herbalife Ltd. (NYSE:HLF)

Share Price as of December 27: $6.70

Number of Hedge Fund Holders: 32

Herbalife Ltd. (NYSE:HLF) is a leading nutrition company that offers health and wellness products in approximately 95 markets worldwide. Its offerings include weight management, targeted nutrition, energy, sports, and fitness products.

The company is trusted by some of the world’s top sportsmen, including football star, Cristiano Ronaldo. Individual athletes and teams sponsored by Herbalife during the 2024 Olympics and Paralympics returned home with 11 medals. It also sponsored six Olympic committees, belonging to India, Israel, Greece, Vietnam, Italy, and Mexico.

On October 30, the company reported financial results for the third quarter of 2024. Net sales were posted at $1.2 billion, down 3.2% year-over-year, driven primarily by FX headwinds. Adjusted EBITDA stood at $167 million, with a margin of 13.4%, and exceeded the guidance range of $125 million to $155 million. Reported EPS for the quarter was 57 cents, beating expectations of 35 cents.

Herbalife Ltd. (NYSE:HLF) has made great strides in reducing its debt, aided by strong cash generation. In Q3, the company had an operating cash flow of $100 million, of which $85 million was used to pay down debt, reducing the total leverage ratio to 3.3x. The move is part of HLF’s overall strategy to lower its debt by $1 billion within five years.

The company is also seeing substantial growth in new distributor members, a 14% increase from last year. This was the second consecutive quarter of year-over-year improvement. The surge has been aided by successful new initiatives to expand the brand’s market reach. HLF’s overall outlook is promising. Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 48%.

According to Insider Monkey’s database for Q3 2024, 32 hedge funds had investments in HLF, up from 29 at the end of the second quarter. It is among the best single digit stocks to buy now.