In this article, we discuss the 10 best weight loss stocks to buy right now. To skip our in-depth analysis on the 2022 obesity epidemic and its impact on the weight loss and fitness industry, head on over and browse directly. please. 5 best weight loss stocks you can buy right now.
In the 21st century, obesity has emerged as one of the biggest health problems worldwide. More than 30% of the world’s population suffers from obesity, according to a McKinsey and Company report. It is responsible for more than 5% of her global death toll, and if the epidemic continues to spread, more than half of the world’s population will be classified as ‘obese’ by 2030. However, little is said about the economic impact of the epidemic. Obesity, along with other human activities such as armed conflict, war and terrorism, have the greatest negative impact on the global economy. Obesity prevention accounts for more than 7% of his global health budget, putting huge pressure on the health sector in terms of costs and spending, but also hindering overall economic gains. The heightened awareness of this crisis, especially since his COVID-19 pandemic, has led an entire wave of millennials and his Gen Z consumers to get involved in the weight loss and fitness industry.
The obesity crisis presents significant opportunities for investors currently struggling with macroeconomic headwinds caused by Russia’s 2022 invasion of Ukraine, rising energy prices, supply chain disruptions, rising interest rates and tightening monetary policy. Offers. The IMF is expected to cut its global growth forecast for the fourth time this year in October 2022, and signs of a possible recession are already starting to appear. Even in these challenging macroeconomic conditions, McKinsey & Company reports that the health, wellness products, and fitness market is growing by 5% to 10% annually, depending on the region. The industry has revolutionized during the COVID-19 pandemic. At this time, large numbers of people were confined to their homes, prompting a massive shift to personalized, at-home workouts, making weight loss and fitness even more important. The fitness tech app garnered him a massive investment of $2 billion in 2020. As a result, a recent survey revealed a shift in general perceptions of fitness and weight loss, with more than 40% of him in the general population perceiving and considering health as a top priority. . This means great things for the weight loss and fitness market in the years to come.
Now, the weight loss and fitness industry has transitioned from weathering the pandemic to thriving normally, building consumer relationships that can sustain and grow. The health and fitness market is expected to grow at a CAGR of 7.21% till 2027. The industry’s current market size, as measured by revenue, will surpass $1.5 trillion in 2022 with an estimated growth rate of 5% to 10 Fitness companies that have incorporated digital models into their services will grow 40.61% overall in 2021 generated significant revenue growth.
Some of the most prominent weight loss stocks in the world are owned by Nike Inc. (NYSE:NKE), Amgen (Nasdaq: AMGN), and Herbalife Nutrition Limited (NYSE: HLF). In this article, we’ll discuss the 10 best weight loss stocks to buy right now.
our methodology
In this article, we explored Insider Monkey’s database that tracks 895 elite hedge funds and identified some of the most popular weight loss stocks in the data. We then selected 10 stocks with strong fundamentals, strong analyst valuations, and favorable hedge fund sentiment.
Stocks are ranked from lowest to highest based on the number of hedge funds holding the stock.
best weight loss stocks to buy now
10. Exponential Fitness (NYSE:XPOF)
Hedge fund holdings: 11
Based in Irvine, California, Exponential Fitness (NYSE:XPOF) is one of the world’s largest franchise groups of boutique fitness brands. We specialize in a variety of weight loss disciplines including Pilates, Cycling, Rowing, Dance, Yoga, Running and Functional Training. Hedge fund sentiment around Exponential Fitness (NYSE:XPOF) improved in the second quarter of 2022, with 11 hedge funds owning shares compared to 8 funds in the previous quarter. Driehaus Capital is the largest shareholder with a total equity value of $2.1 million.
On Sept. 15, B. Reilly analyst Jeff Sinderen began reporting on Xponential Fitness (NYSE:XPOF), setting a price target of $29 and giving the stock a buy rating. Exponential Fitness (NYSE:XPOF) has huge growth potential in his 2023, with a market penetration of about 5%, according to analysts. Now that the obesity epidemic in the United States is at its peak, the boutique fitness trend is rapidly expanding across the country. Additionally, analysts noted that boutique fitness consumers tend to spend more on average than non-boutique fitness customers, a statistic that favors exponential fitness (NYSE:XPOF) I pointed out that it is likely to be one of the best weight loss. stocks to buy.
9. Nautilus (NYSE:NLS)
Hedge fund holdings: 13
Nautilus Inc. (NYSE:NLS) is an American fitness company that specializes in manufacturing, developing and marketing fitness equipment brands such as Universal, Bowflex and Modern Movement. The company is based in Vancouver, Washington, and had total revenue of $54.82 million for the second quarter of 2022. Like Nike (NYSE:NKE), Amgen (Nasdaq: AMGN), and Herbalife Nutrition Limited (NYSE: HLF), Nautilus Inc. (NYSE:NLS) is one of the best weight loss stocks to buy now.
On Oct. 5, Truist analyst Michael Swartz lowered his price target on Nautilus Inc. (NYSE:NLS) from $5 to $4, maintaining a buy rating on the stock. Analysts attribute the lower price target to macroeconomic pressures and a sharp rise in interest rates. But Swartz believes Nautilus (NYSE:NLS) is a profitable investment. He has three main reasons. These include greater diversity in business lines, trusted and safer brand names with higher market value, and significant discounts to book value. Investor interest in Nautilus Inc. (NYSE: NLS) is also growing, with 13 hedge funds holding $5.83 million worth of his shares in Q2 2022. That’s up from his 11 hedge funds that were long stocks in Q1 2022.
Here’s what Orstein Capital Management had to say about Nautilus Inc. (NYSE:NLS) in its fourth quarter 2021 investor letter:
“During the reporting period, the Fund commenced and retired positions with multi-brand fitness companies. Nautilus (NYSE:NLS)The Fund sold its position in Nautilus (NYSE:NLS) due to supply chain constraints and inflationary pressures in a highly competitive environment, changes in our near- and medium-term cash flow forecasts, and a reduction in our original investment. Theory and ratings fell.
8. Medifast Co., Ltd. (New York Stock Exchange: MED)
Hedge fund holdings: 14
Based in Baltimore, Maryland, Medifast Inc. (NYSE:MED) is an American nutrition company that specializes in manufacturing, distributing and marketing weight loss and health related products. We offer our services through our website, multi-level marketing, telemarketing and franchised weight loss clinics. In the second quarter of 2022, Medifast Inc. (NYSE: MED) announced his EPS of $3.42, beating his estimate of $3.23 by $0.19. In the same quarter, the company reported his total revenue of $453.3 million, up 15% year over year. Jim Simons’ Renaissance Technologies is the largest shareholder of the stock as of Q2 2022, with a total equity value of his $137.26 million.
On Sept. 13, DA Davidson analyst Linda Weiser maintained her Buy rating and target price of $278 on Medifast Inc. (NYSE:MED) stock, marking the stock a ” I put it on my list of high confidence small-cap ideas. Weiser expressed confidence in the management team’s track record of delivering growth for the company. She believes many of Medifast Inc.’s (NYSE:MED) drivers continue to see long-term growth. The analyst also noted that Medifast (NYSE:MED) stock is particularly cheap. The company also pays big dividends, with an annual dividend yield of 5.54% for him and a quarterly dividend of $1.64 per share for him.
In its Q3 2021 investor letter, Miller Howard Investments describes Medifast’s (NYSE:MED) performance during and after the pandemic:
“After a rapid rally over the past year, the Russell 2000 Index fell -4.4% in the quarter and small caps turned around. Our biggest critics have all benefited from pandemic demand. Medifast (NYSE:MED) Weight loss program provider and second biggest detractor.
7. WW International Co., Ltd. (NASDAQ:WW)
Hedge fund holdings: 20
WW International (NASDAQ: WW) is a global weight loss, maintenance, fitness and mindset services company headquartered in New York City. For example, Weight Watchers Comprehensive Diet Program. On Aug. 8, DA Davidson analyst Linda Weiser lowered her price target on WW International (NASDAQ:WW) to her $15 from $18.75, maintaining a buy rating on the stock. Analysts said the company outperformed EBITDA in the second quarter of 2022, making it an ideal investment opportunity for long-term investors, even though the stock is currently in a long-term decline. Not only is the company’s free cash flow very promising, but WW International (NASDAQ:WW) also has excellent liquidity. Analysts also have positive hopes for the new CEO, who is cutting unnecessary spending and streamlining the product line.
The company’s revenue streams and share price have been hit by a major shift in consumer dietary preferences, but WW International (NASDAQ:WW) is still profitable and posting significant cash flow. . So avoid rising interest rates altogether. The projected growth is robust, albeit in the distant future, as operating costs continue to fall. Management expects 4% revenue growth and 2% earnings per share growth in 2023.
6. Planet Fitness Co., Ltd. (NYSE: PLNT)
Hedge fund holdings: 28
Hampton, New Hampshire-based Planet Fitness (NYSE:PLNT) is an American company that franchises and operates approximately 2,050 fitness centers, making it one of the largest fitness club franchises in the United States. The company met his EPS estimate and posted earnings of $0.38 per share. Additionally, Planet Fitness (NYSE: PLNT) generated total revenue of $224.44 million in the second quarter of 2022, up 63.5% from the previous quarter. The company also saw a significant increase in his adjusted EBITDA, from $55.6 million a year earlier to $89.9 million. As of the second quarter of 2022, SRS Investment Management is the company’s largest shareholder, owning more than 6.96 million of his shares valued at $473.12 million.
On September 29, JP Morgan analyst Rahul Krotthapalli lowered his price target on Planet Fitness (NYSE:PLNT) from $80 to $66, maintaining his overweight rating on the stock. Despite the stock dropping a whopping 23% in 25 trading sessions, led by a relatively weak 2022, analysts said Planet Fitness (NYSE:PLNT)’s low-cost investment in the The value proposition is expanding the company’s customer base. Krotthapalli explains that the current market bottleneck is just a temporary problem caused by macroeconomic headwinds, and claims he likes Nike Inc. (NYSE:NKE), Amgen (Nasdaq: AMGN), and Herbalife Nutrition Limited (NYSE: HLF), the company has been well leveraged to weather the crisis, making it an attractive investment for long-term investors.
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Disclosure: None. 10 Best Weight Loss Stocks to Buy Now was first published on Insider Monkey.
