11 Ridiculously Cheap Stocks to Invest in

2. Herbalife Ltd. (NYSE:HLF)

Forward P/E as of April 17: 2.97

Herbalife Ltd. (NYSE:HLF) is a global nutrition company providing health and wellness products. This California-based company operates through various geographical segments, including North America, Latin America, EMEA, Asia Pacific, and China. The core offerings of the company include meal replacements, a snack portfolio, and dietary supplements. With operations in more than 90 countries, the company considers improving nutritional habits all over the world with exquisitely flavored, science-based nutrition products to assist people in maintaining a balanced lifestyle.

Just a few days ago, investment banking firm D. A. Davidson & Co. expressed optimism for Herbalife Ltd. (NYSE:HLF) by increasing its price target to $14 from $7.50, upgrading to Buy from Neutral. This guidance is driven by the company’s gradual growth in its new and existing distributors in the last few quarters. Additionally, the firm believes that the appointment of Stephan Gratziani as the chief executive officer will prove fruitful for Herbalife Ltd. (NYSE:HLF) as several measures have been taken in the areas of recognition, digital tools, distributor training, and information-sharing systems.

The company’s MLM business model is what sets it apart from an investor’s perspective. Herbalife Ltd. (NYSE:HLF) adopts an approach that integrates direct selling and multi-level marketing with independent distributors forming a network. The investments in technology to help the members improve their online channels reinforce that the strategies chosen are well-structured. And with the weight loss segment contributing the most to the company’s revenues, we can only expect it to grow further in this calorie-counting world.

Considering this, the analysts have set a one-year price target for Herbalife Ltd. (NYSE:HLF) as high as $13 and as low as $7. While the true value lies in management changes and strategic initiatives like the loyalty card program in China, the company can deliver returns if it’s successful in capitalizing on the business model.