Although it's still a while before New Year's Day, diets and healthier eating will almost certainly be near the top of many lists of resolutions. One beneficiary is NutriSystem (NASDAQ: NTRI) – a buy recommendation from small cap expert Tom Bishop.
The editor of BI Research says, "NutriSystem is knocking it out of the ballpark, beating estimates and raising guidance." The company markets and sells the food for its proprietary weight loss system, which is based on a low glycemic index.
Bishop notes the company increased revenues by 141% and earned $0.63 in its third quarter, up from $0.19 last year, which was a "big upside surprise" over Wall Street's estimates.
Helping the company has been its ad campaign, in which former Dolphin quarterback Dan Marino has been pitching the weight loss program. Notes Bishop, "Already 30% of its customers are men, who like the anonymity and do-it-at-home nature of the product." Next up will be promotions aimed at seniors, featuring coach Don Shula - another former Dolphin - and his wife.
Meanwhile, those who wish to oversee their own healthier diets may prefer Whole Foods Market (NASDAQ: WFMI), which recently shed some pounds itself. The stock took a major hit when its lowered its growth forecast for 2007 from 20% to 17%.
Todd Schoenberger, editor of Red Zone Profits, says, "This knee-jerk reaction by traders and investors has presented a wonderful buying opportunity."
He emphasizes that this is "not the time to jump ship" as the firm is far from saturating its markets, and its future remains bright. He recommends buying or adding to positions at prices below $47.50.
Paul Tracy, editor of StreetAuthority Market Advisor, agrees that the sell off in Whole Foods was "shortsighted." He says, "After flying high for more than three years, it should not be alarming that the company's year-over-year comparisons have begun to moderate somewhat." Despite this, he notes, "shareholders have much to look forward to from Whole Foods over the long haul."
The advisor points to aggressive expansion plans that should continue to fuel solid top-line growth; he notes that the company has signed some 90 leases to develop new locations. Further, he expects the firm to pursue "ambitious plans to expand its footprint in faster-growing markets overseas."
Tracy is also attracted to the firm's "extremely shareholder-friendly policies", noting that the firm paid out more than $350 million in dividends last year and that management recently boosted its quarterly dividend payment by 20% to $0.18 per share.
Lastly, the firm also boosted its share repurchase program, while its CEO John Mackey waived any stock option compensation and reduce his annual salary to just $1.
Steven Halpern is editor of TheStockAdvisors.com, a free daily overview of the lastest investment ideas from the financial newsletter community.
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Reader Comments (Page 1 of 1)
11-22-2006 @ 5:28AM
Gulf Harbour said...
I think this is a great article...the best diet in the world however still remains...burning more calories than you consume...and it is a surefire way to lose weight.