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Here's Why You Should Invest in GNC Holdings (GNC) Right Now

Buy or sell dice

GNC Holdings, Inc.GNC has been gaining investor confidence on stellar results over an extended period. Year to date, the company's stock has outperformed its industry . The stock has gained 11.2% against the industry's 2.2% rise.

This leading global specialty retailer of products for health and wellness, including vitamins, minerals, and herbal supplement and sports nutrition has a market cap of $332.20 million.

With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for now.

Per our Zacks Style Score system, GNC Holdings has a Value Score of A, which reflects the company's solid prospects. Our research shows that stocks with a Value Style Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential.

Let's find out whether the recent positive trend is a sustainable one.

What's Boosting the Stock?

Growing E-commerce Business

GNC Holdings' changed e-commerce pricing and promotion strategy allowed the company to launch its entire product line on Amazon (sales from which are included in the GNC.com business unit) in January 2017.Moreover, the company is upbeat about the shift of control of the website from a third party to a cloud-based, company-controlled platform. Notably, in the second quarter of 2018, GNC Holdings witnessed a 2.8% rise in revenues from e-commerce business driven by growth in revenues from both GNC.com and Amazon Marketplace.

Expansion in International Markets

The company's growing international business has been a major plus. Management expects to continue capitalizing on international revenue growth opportunities through the addition of franchise stores in existing markets, expansion into new high-growth markets and the growth of product distribution in both existing and new markets.

One New GNC Plan May Act as a Game Changer

In 2016, management announced several strategies to deliver improved performance in the near future. It plans to revamp its existing business model. The model, dubbed as the 'new GNC', would include the lower single product pricing policy, a new product pipeline, free and paid loyalty program, new customer friendly technology which includes terminals, tablets, Wi-Fi and a new mobile app that improves and personalizes the shopping experience.

From the beginning of 2017, the company has started to witness transformational changes in its operations. Per management, the new GNC Plan has been getting favorable response from customers. Management is particularly encouraged by new loyalty programs under this plan.

Other Key Picks

Other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG , Genomic Health GHDX and Masimo Corporation MASI .

Intuitive Surgical's long-term expected earnings growth rate is 15.8%. The stock currently carries a Zacks Rank of 2.

Genomic Health's expected earnings growth rate for the next year is 40.7%. The stock holds a Zacks Rank #2 at the moment. You can see the complete list of today's Zacks #1 Rank stocks here.

Masimo's long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.

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 >>

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Masimo Corporation (MASI): Free Stock Analysis Report

Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report

Genomic Health, Inc. (GHDX): Free Stock Analysis Report

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

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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.

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