Why Herbalife Is Poised to Underperform


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nutritional-supplement maker Herbalife has received an underwhelming two-star ranking.

With that in mind, let's take a closer look at Herbalife and see what CAPS investors are saying about the stock right now.

Herbalife facts

Headquarters (founded)

Grand Cayman, the Cayman Islands (1980)

Market Cap

$3.2 billion


Personal products

Trailing-12-Month Revenue

$3.9 billion


Chairman/CEO Michael Johnson
CFO John DeSimone

Return on Equity (average, past 3 years)



$321.7 million / $503.4 million

Dividend Yield



GNC Holdings

Wal-Mart Stores

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 28% of the 572 members who have rated Herbalife believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, Foolish colleague John Divine (TMFDivine), helped our community get caught up on the short opportunity:

Whenever SEC investigations about your company being a Ponzi scheme are in motion, I have to hop off the bull train. Fellow Fool Michael Lewis' first piece on HLF breaks down some of the problems in simple terms. It's an excellent piece get yourself briefed on if you want to get a quick lowdown.

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The article Why Herbalife Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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