3 Weight-Loss Stocks In Focus On Rising Obesity Fears
Zacks Investment Research | Jan 16, 2019 08:17PM ET
The United States has the highest percentage of overweight adults in the world. A fresh report by The State of Obesity shows that healthcare costs related to the condition range from $147 billion to $210 billion every year.
In fact, North America is expected to play a significant role in the global non-invasive fat reduction market, which is likely to see a healthy CAGR till 2023.
This speaks volumes of the investment opportunities in the weight loss industry.
US Weight loss Industry: A Booming One
The nation is fighting obesity through products and services designed by its corporate giants for helping in weight loss and carrying out bariatric surgeries. Among others, beverage giants like Coca-Cola Company (NYSE:KO) and Pepsico (NASDAQ:PEP) to switch to healthier drink versions. Per an article by Market Research, the U.S. weight-loss market reached a worth of $70 billion in 2018.
Weight Loss Services & Products
Commercial weight-loss companies are raking in billions, thanks to growing health awareness among millennials. A number of U.S. organizations offer app-based programs, in-person meetings, online training and diet programs. This has boosted business for retailers of health and wellness products.
Some key players in the space are myFitnesspal, The Mayo Clinic and Noom, among others. The myFitnesspal app offers day-to-day support and guidance through food and exercise tracking. The Mayo Clinic offers a unique diet programs for weight management.
Also, weight-loss pills and ketogenic dietary supplements are expected to simplify weight management procedures.
For instance, GNC Holdings offers a wide range of meal replacement and appetite control products. Additionally, bigwigs like Abbott Laboratories (NYSE:ABT) and Nestle offer diverse products like protein shakes and ketogenic diet supplements.
Bariatric Surgery
Bariatric or weight-loss surgery rates have been on the rise in the United States.
Notably, MedTech giants like Medtronic (NYSE:MDT), Johnson & Johnson (NYSE:JNJ) and TransEntrix offer a wide range of surgical devices for bariatric surgeries. In fact, U.S. MedTech player Cerner Corporation (NASDAQ:CERN) recently announced a tie-up with Christiana Care Health System to provide bariatric services to its health plan members. (Read More: the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Additionally, the Zacks Consensus Estimate for each of the stocks’ earnings have remained stable over the past 60 days.
Our first stock is Weight Watchers International, Inc. (NASDAQ:WTW) , also known as WW. Headquartered in New York, WW is the largest provider of weight control programs in the world. WW’s core business includes weekly meetings, in which they present scientifically designed programs, group support and education about healthy eating patterns and physical activities.
Recently, the company launched WW Fresh quick-prep meals, which are chef-inspired, nutritionist-approved and ready-to-eat in 10 minutes or less.
The Zacks Consensus Estimate for current-quarter earnings is pegged at 61 cents, reflecting year-over-year growth of 64.9%.
Get The News You Want
Weight Watchers International Inc Price and Consensus
Weight Watchers International Inc Quote
Over the past two years, WW’s net income saw a CAGR of 180.6% to $188 million.
Next on our list is NutriSystem Inc. (NASDAQ:NTRI) . The Pennsylvania-based leader in the weight-loss industry offers clinically-tested NutriSystem Lean13 program, designed to deliver weight loss of up to 13 pounds and seven inches in the first month. The South Beach Diet meal delivery weight-loss program deserves a mention in this regard.
The Zacks Consensus Estimate for current-quarter earnings is pegged at 61 cents, mirroring year-over-year growth of 45.2%.
Over the past two years, NutriSystem’s net income saw a CAGR of 56.8% to $58 million.
Investors may also keep an eye on MEDIFAST INC (NYSE:MED) . The Maryland-based company is a manufacturer and distributor of weight loss and other health-related products through websites, multi-level marketing, telemarketing, weight loss clinics and medical professionals.
The company sells weight-loss kits which include bars, shakes and drinks.
The Zacks Consensus Estimate for current-quarter earnings is pegged at $1.19, showing year-over-year growth of 98.3%.
Over the past two years, MEDIFAST’s net income saw a CAGR of 21.7% to $28 million.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.