GNC Holdings Expands in India, Boosts International Business

Keeping in line with the strategy to fortify its hold on high-potential geographical regions, GNC Holdings, Inc.GNC recently announced plans to expand presence in India. In India, the company operates in collaboration with the master franchise partner - Guardian Healthcare Services Pvt. Ltd.

Per the latest announcement, Guardian will add GNC Holdings' products to 4000-plus stores across India by 2020. In this regard, 1000 new stores are expected to shelf GNC products in 2018 compared with approximately 50 retail locations at present. This apart, GNC Holdings has been targeting other channels like retailing, e-commerce and distribution for expansion.

International Business - A Key Growth Driver

GNC Holdings' international business has been a key growth driver for the company in recent years. Revenues at this segment increased 14.1% on higher cross-border e-commerce sales in China last quarter.

Of late, the company has been experiencing solid growth in China. In this regard, GNC Holdings recently announced plans of entering into a strategic partnership and joint venture agreement with Harbin Pharmaceutical Group Holding Co., Ltd. Meanwhile, the company has witnessed improvement in trends in Mexico, South Korea and Hong Kong.

Market Potential

Per a report by the Associated Chambers of Commerce and Industry in India (ASSOCHAM), India's nutraceutical market is estimated to value $10 billion by 2022, seeing a CAGR of approximately 20%, during the forecast period of 2017−2022. Thus, in view of such data, we believe GNC Holdings' aggressive expansion plans in India are strategic.

Share Price Performance

In the past three months, GNC Holdings has been underperformed its industry . The stock has lost 14.6% compared with the industry's decline of 1.1%. We believe this latest development will help the stock to rebound.

Zacks Rank & Key Picks

GNC Holdings carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical sector are PerkinElmer PKI , Bio-Rad Laboratories BIO and athenahealth, Inc. ATHN .

Bio-Rad Laboratories sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The company has a long-term expected earnings growth rate of 20%.

athenahealth is a Zacks #1 Ranked player. The company has a long-term expected earnings growth rate of 21.5%.

PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2 (Buy).

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

athenahealth, Inc. (ATHN): Free Stock Analysis Report

PerkinElmer, Inc. (PKI): Free Stock Analysis Report

Bio-Rad Laboratories, Inc. (BIO): Free Stock Analysis Report

GNC Holdings, Inc. (GNC): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More