When it comes to stock market and stock trading, companies are required to promising enough to the investors that their investments will yield returns at the end of it all. Other than annual net incomes and profits, companies like Herbalife are affected by a number of factors in their growth in the stock market.
First is their product portfolio. Herbalife Nutrition is a weight management and diet company that produces products like protein smoothie, sports and fitness support products, and weight management products. With the recent obsession with healthy living, the market for such products is constantly growing with clients demanding more quality products to help them achieve their dream body. This has made it quite easy for the Herbalife management team to establish a market as well use introduce new products. The Herbalife product portfolio is built in such a way that they are able to retain older client as they break now ground elsewhere. This is a positive factor that promotes the growth of the Herbalife stock in the market.
Global presence is another factor. Herbalife has its headquarters in Los Angeles but is spread over 94 counties with tens of thousands of independent distributors. This global presence poses a threat and a strength for the company. As a threat, global presence presents the challenge of constant currency movement and fluctuations in different countries. As a strength, by having a global presence the company has a promising future by solidifying the brand’s name on a larger scale. This helps the company to operate at economies of Scale and reduce competition while maintaining its stock market position.
Other factors affecting the performance of the Herbalife Nutrition bull-run are volume growth and efforts within the company to offset hurdles faced in business transactions.
In 2019, investors are witnessing new options trading this week for the August 2019 contract. This first few days of the 228 contract presents an investment opportunity for put and call investors. With prominent investors eyeing the Herbalife stock due to its previous history of continuous growth, the put and call investors are expected to reap premium returns on their investments. Nonetheless, it’s wiser to study the trends of previous years and understand business fundamentals before making an investment move.