In this article, we will be looking at the 5 best weight loss stocks to buy now. To see our detailed analysis of the fitness industry, you can go directly to the 10 Best Weight Loss Stocks to Buy Now.
5. Herbalife Nutrition Ltd. (NYSE: HLF)
Number of Hedge Fund Holders: 40
Herbalife Nutrition Ltd. (NYSE: HLF) offers nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company’s products also tackle weight management, targeted nutrition, and fitness. It ranks 5th on our list of the best weight loss stocks to buy now.
This May, Herbalife Nutrition Ltd. (NYSE: HLF) announced that it would be raising $600 million in senior notes offering. In the first quarter of 2021, Herbalife Nutrition Ltd. (NYSE: HLF) had an EPS of $1.42, beating estimates by $0.34. The company’s revenue was $1.5 billion, an 18.95% increase year over year and beating estimates by $72.1 million. The stock has a forward PE ratio of 10.75 and has gained 10.5% in the past 6 months and 6.29% year to date. Herbalife Nutrition Ltd. (NYSE: HLF) has a gross profit margin of 48.07%.
By the end of the first quarter of 2021, 40 hedge funds out of the 866 tracked by Insider Monkey held stakes in Herbalife Nutrition Ltd. (NYSE: HLF). The total value of their stakes was roughly $1.99 billion. This is compared to 41 hedge funds in the previous quarter, with a total stake value of about $2.72 billion.
4. Lululemon Athletica Inc. (NASDAQ: LULU)
Number of Hedge Fund Holders: 41
Lululemon Athletica Inc. (NASDAQ: LULU) is an athletic apparel and accessories retailer. The company has two segments: Company Operated Stores and Direct to Consumer. It ranks 4th on our list of the best weight loss stocks to buy now.
This June, Evercore ISI stated that Lululemon Athletica Inc. (NASDAQ: LULU) Mirror products had resilient demand and were considered complementary buying options to Peloton Interactive, Inc. (NASDAQ: PTON) products. BTIG has made favorable comments about the company, saying that demand for its products has remained consistent during the pandemic. BTIG has retained its Buy rating and $434 price target on Lululemon Athletica Inc. (NASDAQ: LULU). In their fiscal first quarter of 2022 report, Lululemon Athletica Inc. (NASDAQ: LULU) had an EPS of $1.16, beating estimates by $0.25, while its $1.23 billion revenue, showcasing an 88.12% growth year over year, beat estimates by $96.86 million. The stock has gained 4.23% in the past 6 months and 2.75% year to date, while the company has a gross profit margin of 56.87%.
By the end of the first quarter of 2021, 41 hedge funds out of the 866 tracked by Insider Monkey held stakes in Lululemon Athletica Inc. (NASDAQ: LULU). The total value of their stakes was roughly $751 million. This is compared to 50 hedge funds in the previous quarter with a total stake value of about $929 million.
3. DexCom, Inc. (NASDAQ: DXCM)
Number of Hedge Fund Holders: 56
DexCom, Inc. (NASDAQ: DXCM) is a medical device company that develops continuous glucose monitor (CGM) systems in the US and internationally. The company’s CGMs can be used for glucose monitoring for diabetics, which can also help users monitor weight loss and gain goals. The company ranks 3rd on our list of the best weight loss stocks to buy now.
On June 14th, Piper Sandler retained DexCom, Inc. (NASDAQ: DXCM) as a top pick alongside its Overweight rating and $500 price target on the stock. This May, Wells Fargo upgraded the stock to Equal Weight with a $380 price target. In the first quarter of 2021, DexCom, Inc. (NASDAQ: DXCM) had an EPS of $0.33, beating estimates by $0.04, while its $505 million revenue represented a 24.66% increase year over year and beat estimates by $20.19 million. DexCom, Inc. (NASDAQ: DXCM) has a gross profit margin of 67.48% and has gained 18.36% in the past 6 months and 19.87% year to date.
By the end of the first quarter of 2021, 56 hedge funds out of the 866 tracked by Insider Monkey held stakes in DexCom, Inc. (NASDAQ: DXCM). The total value of their stakes was roughly $1.67 billion. This is compared to 52 hedge funds in the previous quarter, with a total stake value of about $1.66 billion.
Carillon Tower Advisers, an investment management firm, mentioned DexCom, Inc. (NASDAQ: DXCM) in their fourth-quarter 2020 investor letter. Here‘s what they said:
“DexCom, a developer and manufacturer of continuous glucose monitors (CGMs) for people with diabetes, saw its share price suffer in the quarter after an announcement from its largest competitor that it had finally developed a CGM that appears to be competitive with Dexcom’s flagship G6 sensor. Until the competitive dynamics are sorted out, we feel as though the firm’s shares could remain range-bound, leading us to exit the position.”
2. Peloton Interactive, Inc. (NASDAQ: PTON)
Number of Hedge Fund Holders: 64
Peloton Interactive, Inc. (NASDAQ: PTON) is a provider of interactive fitness products in North America and internationally. The company’s products include the Peloton Bike and the Peloton Tread, and it ranks 2nd on our list of the best weight loss stocks to buy now.
This June, Peloton Interactive, Inc.’s (NASDAQ: PTON) corporate wellness offering has received favorable responses from users and analysts alike. Bank of America commented that the program is raking in more demand for Peloton Interactive, Inc. (NASDAQ: PTON) products, and the firm has raised its price target on the stock to $108 in light of Peloton Interactive, Inc.’s (NASDAQ: PTON) presentation at the BofA global technology conference as well. In their fiscal third-quarter report 2021, Peloton Interactive, Inc. (NASDAQ: PTON) had an EPS of $0, beating estimates by $0.08. Its revenue of $1.26 billion represented a 140.62% growth year over year and beat estimates by $140.96 million. It has a gross profit margin of 40.28%, and the stock has gained 113.98% in the past year.
By the end of the first quarter of 2021, 64 hedge funds out of the 866 tracked by Insider Monkey held stakes in Peloton Interactive, Inc. (NASDAQ: PTON). The total value of their stakes was roughly $3.96 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of about $5.66 billion.
Artisan Partners, a high value-added investment management firm, mentioned Peloton Interactive, Inc. (NASDAQ: PTON) in their first-quarter 2021 investor letter. Here‘s what they said:
“Among our bottom Q1 contributors was Peloton Interactive. Peloton’s growth has accelerated throughout the pandemic as consumers replace in-person gym workouts with the company’s connected bikes and online classes. This has increased brand awareness, decreased the need for advertising spending and quickly proved the company’s high-margin, recurring revenue business model. These benefits were on clear display in Peloton’s Q4 results, which showed subscription growth trends remain robust entering 2021. However, this demand, combined with global supply chain bottlenecks, is resulting in bike shipment delays and has led the company to spend $100 million in the coming months to expedite deliveries. While this will pressure near-term profits, we expect trends to improve later this year as the company’s investments in manufacturing capacity bear fruit and as it rolls out a new, affordable treadmill. We trimmed our position early in the quarter based on valuation concerns, but the stock’s subsequent selloff brought the valuation back into an attractive range, in our view.”
1. NIKE, Inc. (NYSE: NKE)
Number of Hedge Fund Holders: 78
NIKE, Inc. (NYSE: NKE) develops athletic footwear, apparel, fitness equipment, and accessories across the globe under the NIKE brand. It ranks 1st on our list of the best weight loss stocks to buy now.
On June 25th, NIKE, Inc. (NYSE: NKE) was reportedly a consumer gainer, and its strong earnings report had led to more analysts giving the stock favorable responses. Evercore ISI gave NIKE, Inc. (NYSE: NKE) an Outperform rating and BTIG assigned a Buy rating alongside UBS. In the fiscal fourth quarter of 2021, NIKE, Inc. (NYSE: NKE) had an EPS of $0.93, beating estimates by $0.42, while its $12.34 billion revenue showcasing a 95.53% growth year over year also beat estimates by $1.32 billion. The stock has gained 6.95% in the past 6 months and 8.73% year to date. NIKE, Inc. (NYSE: NKE) has a gross profit margin of 44.82% as well.
By the end of the first quarter of 2021, 78 hedge funds out of the 866 tracked by Insider Monkey held stakes in NIKE, Inc. (NYSE: NKE). The total value of their stakes was roughly $5.17 billion. This is compared to 82 hedge funds in the previous quarter, with a total stake value of about $6.28 billion.
You can also take a look at 10 Best Stocks To Buy For 2021 and 10 Best Stocks to Invest in 2021 For Long-Term Profits.
