Health & Wellness Stocks with Potential for Major Outperformance (USNA, GTEH, HLF, BRBR, CELH, SMPL, MSLP, WW, NKE, LULU)

The Health and Wellness market space has evolved from a self-improvement ideal to a lifestyle, and it appears to be a strong candidate for major growth ahead.

According to Fast Company, wellness is now a rapidly growing $4.2 billion industry with continued growth potential across health-tech, “athleisure” apparel, supplements, and fitness both inside and outside of the home. 

Much of this has been driven by big companies like Nike Inc (NYSE:NKE) and Lululemon Athletica Inc (NASDAQ:LULU) democratizing athleticism for the masses. But it may be much more than that.

As we have seen in areas like clean energy technology and digital media entertainment, the baton is passing from the “boomers” to the “zoomers” in terms of how key industries are targeting consumer interests to drive major long-term growth potential. Younger generations appear to be far more focused on preventative health and wellness than previous generations.

For investors, this represents a secular growth theme with enormous potential. But, as with other major secular investment opportunities taking shape right now that appear set to define the next decade ahead – space development, electric vehicles, carbon capture, artificial intelligence, and robotics are a few good examples on par with health & wellness – the devil’s in the details, and stock picking will be important.

With that in mind, we take a look at several stocks poised to potentially lead the way in this space, along with some of their key recent catalysts.

USANA Health Sciences, Inc. (NYSE:USNA) develops and manufactures nutritional, personal care and weight-management products. Its product line divided into four categories: Essentials, Optimizers, Foods, Personal Care and Skincare, and All Other. 

The Essentials Nutritionals category includes vitamin and mineral supplements that provide a foundation of advanced total body nutrition for every age group. The Optimizers Nutritionals category consists of targeted supplements that support cardiovascular health, skeletal and structural health, and digestive health. The Foods Nutritionals category includes low-glycemic meal replacement shakes, snack bars, and other related products that provide optimal macro-nutrition. The Personal Care and Skincare includes science-based personal care products and Celavive. The All Others includes materials and online tools that are designed to assist Associates in building their businesses and in marketing products.

USANA Health Sciences, Inc. (NYSE:USNA) recently announced that its Coenzyme Q10 (CoQ10) supplement — CoQuinone 30 — has received the prestigious seal of approval for purity and label accuracy from third-party tester ConsumerLab.com. CoQuinone 30 has received a seal of approval each time the product has been tested by ConsumerLab.com.

“Our goal at USANA is to always provide our customers the highest-quality, most-trusted supplements on the market,” says Dan Macuga, USANA’s chief communications and marketing officer. “Receiving third-party validation for our outstanding supplements gives our customers satisfaction the products they’re taking are second to none. Earning a ConsumerLab.com seal of approval for our CoQuinone 30 supplement every time it is tested is not only remarkable, but it’s also further proof of the care and effort behind USANA’s product formulation and manufacturing.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action. 

USANA Health Sciences, Inc. (NYSE:USNA) managed to rope in revenues totaling $336.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 30.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($265.5M against $153M).

GenTech Holdings Inc (OTC US:GTEH) is the most speculative name in our coverage today, but it shouldn’t be overlooked despite its cheap share price and OTC status given its huge strides over the past year to roll up a number of interesting sports nutrition brands with major commercial potential. This strategy is starting to yield real results in terms of operational performance.

As a case in point, the company came out this morning with its provisional year-to-date financial performance data along with its objectives for the year ahead. As covered in its release, the company showed Gross Consolidated Revenues from operations of nearly $750k through the first three quarters of the year. When you add in the trajectory of sales for its recent American Metabolix acquisition, the outlook for the year jumps to an assumption of approximately $1.3 million based on the current revenue run rate across all segments and subsidiaries.

GenTech Holdings Inc (OTC US:GTEH) CEO David Lovatt commented, “These figures show exceptional growth relative to 2020 performance data. At this time last year, we had consolidated year-to-date sales of $181,000. To close out at the $1.3 million mark a year later would represent very impressive growth. If we continue to extrapolate forward, with all of our acquisitions accounted for, one can make a conservative case for over $2.6 million in 2022. However, we anticipate a much more aggressive growth curve, based on recent performance, and we are now just beginning to drive our most promising brands into much larger market opportunities.”

Lovatt further commented on ongoing supply chain issues as well as the Company’s new offering for 2022, “Fizzique” (www.drinkfizzique.com): “We are not yet hitting our full potential as we see supply chain issues slowing down inventory supply for NxtBar (www.nxtbar.com) and NatureSoothie (www.naturesoothie.com), as well as Fizzique (www.drinkfizzique.com) not yet being available to end market consumers. If you add in a full inventory for NxtBar and Nature Soothie, our 2022 revenue outlook jumps to over $3.5 million.”

“Once Fizzique sales start to hit, we conservatively estimate it alone can bring in over $3.5 million in topline revenues next year, taking us to well over $7 million in 2022,” added Lovatt. “If we also include second derivative effects, the growth curve across all product lines drives that projection above $10 million, which would represent a material qualitative step in our commercial development as a Company.”

GenTech Holdings Inc (OTC US:GTEH) management noted in its release that it believes both of its operating subsidiaries are poised for continued growth as tailwinds from increased marketing spend and improved operating conditions become active factors in defining the Company’s operational landscape. In addition, the company says it recently applied to FINRA for approval on a Change of Corporation Name to Supplement Group (USA), Inc. Management anticipates this will be granted and will become effective before the end of November 2021. No change to the Ticker has been requested and no other corporate action, such as a stock split, has been applied for or is anticipated by management in the near term.

Herbalife Nutrition Ltd (NYSE:HLF) engages in the development and sale of nutrition solutions. It operates through the following segments: North America; Mexico; South and Central America; Europe, Middle East, and Africa; Asia pacific; and China. 

The company was founded by Mark Reynolds Hughes in February 1980 and is headquartered in George Town, Cayman Islands.

Herbalife Nutrition Ltd (NYSE:HLF) recently announced it has been recognized as one of the ‘Elite 8’ companies within Achievers 50 Most Engaged Workplaces® Awards, which celebrates the top employers that make engagement, alignment and recognition central to the employee experience. The company was awarded for its global programs that support manager empowerment.

“Providing opportunities for our employees to grow professionally and be their best is part of our culture, and it’s built into the principle that together we can build it better,” said Everton Harris, chief human resources officer, Herbalife Nutrition. “This award is a testament to our employees who commit to making this a great place to work every day.”

If you’re long this stock, then you’re liking how the stock has responded to the announcement. HLF shares have been moving higher over the past week overall, pushing about 9% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 8% in that time on strong overall action. 

Herbalife Nutrition Ltd (NYSE:HLF) managed to rope in revenues totaling $1.6B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 15.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($840.1M against $1.1B, respectively).

Other key names involved in the supplements include Celsius Holdings, Inc. (NASDAQ:CELH), Simply Good Foods Co (NASDAQ:SMPL), MusclePharm Corp (OTCMKTS:MSLP), WW International Inc (NASDAQ:WW), and Bellring Brands Inc (NYSE:BRBR).

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss