Analysis of Herbalife share price

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Some companies listed on the stock exchange come from a sector of activity that is currently in full development, that of well-being. This is the case of the Herbalife company, which we will discuss in more detail here. Indeed, to enable you to buy this share on the stock market with full knowledge of the facts and to carry out a relevant technical analysis, we will detail the activity of this group and give you a historical analysis of its share price.

Elements that can influence the price of this asset:

Analysis N°1

We know that the Herbalife group is doing its utmost to ensure that its products and activities benefit from real support from medical rating agencies. Obtaining certifications from these agencies would of course help to remove the doubts and fears of consumers regarding both the effectiveness and the non-hazardousness of the natural products offered by this company.

Analysis N°2

Herbalife is also relying heavily on the recent creation of customer loyalty programs that should begin to bear fruit after a few years with undoubtedly higher sales.

Analysis N°3

Herbalife now uses an increasingly skilled workforce for the production of its products, which strengthens both its brand image and its long-term productivity.

Analysis N°4

However, competition in the natural health and beauty products sector is becoming increasingly strong and concerns in particular the entry into this market of large pharmaceutical companies.

Analysis N°5

It is also noted that the cost of research to innovate even more is still relatively expensive and that Herbalife must therefore find a way to quickly make these operations profitable.

Analysis N°6

Finally, Herbalife will undoubtedly still have to face certain obstacles from governments and current and future legislation, which are becoming increasingly drastic with regard to healthcare.

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General presentation of Herbalife

The Herbalife group specialises in the production and marketing of food products for slimming diets, but also natural products aimed at adopting a healthy lifestyle. We can consider four main activities including weight management, targeted nutrition, energy management and fitness.

Launched in the Cayman Islands, Herbalife markets its products all over the world and has been generating a constantly growing turnover for the last few years.

The Herbalife share price is currently listed on the New York Stock Exchange in the United States. It also includes the calculation of the NYSE index.

Over the last ten years, stock market charts have shown a clear increase in the price of this share, despite a slight downward retracement between 2008 and 2009, and another between May and December 2012.

Analysis of Herbalife share price
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The factors in favour of a rise in the Herbalife share price:

First of all, the Herbalife group has become a brand name known and recognised as a quality brand all over the world. It owes this excellent reputation in the eyes of the general public to the quality of its products but also to their usefulness. It should also be noted that the group offers a wide range of products whose interest is first measured by experts during in-depth scientific analyses and by studies on consumer purchasing habits.

Herbalife can also rely on a strategic distribution network that enables it to achieve significant sales and on a very well-functioning marketing strategy that has proven itself over many years.

Finally, Herbalife is also a company with an international outlook as it is present in many countries around the world. It thus protects itself from risks related to a single geographical sector.

The factors in favour of a drop in the Herbalife share price:

Among the biggest negative points that can be highlighted about the Herbalife company is the increased mistrust of consumers with regard to the possible side effects of treatments and medicines composed of plant extracts, especially with regard to health and weight loss. It goes without saying that Herbalife's sales suffer from this mistrust. It will probably take a few years before consumers become truly comfortable with this type of natural product.

The Herbalife brand, although enjoying an excellent image in many countries, remains less well known and therefore less popular in certain regions, which prevents it from establishing itself on a long-term basis. Therefore, the group still has some efforts to make to boost its international development.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the largest current shareholders of the Herbalife group?

Of course, the capital of the Herbalife group is currently divided between several major shareholders, including Icahn Enterprises with 23.3% of the group's shares, Capital Research & management with 12.3% of the shares, JL Advisors with 7. 88% of the shares, Perry Corp New-York with 7.37% of the shares, The Vanguard Group with 6.79%, Herbalife Nutrition with 6.63% of the shares, Decca, Value Investors with 6.44%, Renaissance Technologies with 5.38%, Cantillon Capital Management with 5.09% and Third Point Management with 4.10%.

What is the history of Herbalife?

Herbalife was founded in February 1980. At that time, its founder, Mark Hughes, began marketing weight loss products. In 1982, the company quickly reached a turnover of two million dollars and expanded by opening a subsidiary in Canada. In 2006, the group's turnover will reach 1.885 billion dollars.

Can I invest in Herbalife shares online?

You no longer need to have a stock market portfolio in the form of a securities account or a PEA to start investing in the Herbalife share price. Indeed, some brokers or online brokers allow you to take a position on the price of this stock, up or down, using contracts for difference or CFDs. These are available without actually owning the stock.

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