What Happened?
Shares of health and wellness products company Herbalife (NYSE:HLF) jumped 3.4% in the morning session after an analyst upgraded the company's stock to 'Buy' following strong third-quarter results.
Argus raised its rating and set a price target of $15 for Herbalife, citing expected revenue growth from new products. This positive view was supported by the company's recent performance. In its third-quarter 2025 earnings report, Herbalife posted revenue of $1.3 billion, which surpassed the anticipated $1.26 billion.
The company also achieved an earnings per share of $0.50, beating the forecast of $0.46. The broader sentiment from analysts appeared positive, with a consensus 'Buy' rating noted across the board.
After the initial pop the shares cooled down to $14.02, up 3.9% from previous close.
Is now the time to buy Herbalife? Access our full analysis report here.
What Is The Market Telling Us
Herbalife’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 2.8% on the news that investor concerns grew over the company's financial health, highlighted by shrinking sales and sluggish growth forecasts.
Analysis pointed to shrinking unit sales over the previous two years and a projected sales growth of only 2.9% for the next twelve months, suggesting weak demand. Furthermore, the company's earnings per share had decreased more than its revenue, partly because it diluted shareholders.
Adding to the negative sentiment were potential business risks, including regulatory compliance and uncertain consumer demand. An analyst from Mizuho also previously set a price target of $11.00, which implied an expectation for the stock to fall.
Herbalife is up 110% since the beginning of the year, and at $14.02 per share, has set a new 52-week high. Investors who bought $1,000 worth of Herbalife’s shares 5 years ago would now be looking at an investment worth $287.12.
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