NutriSystem:A Compelling Momementum Stock (NTRI)

Barry Gitarts submits: Nutrisystem (NTRI) is a great play on the #1 disease worldwide: obesity. More people suffer from obesity than any other other disease, and NutriSystem has a solution.

The Glycemic Index measures the quality of carbohydrates and their impact on your blood sugar. According to Nutrisystem:

carbohydrates that break down slowly in your body encourage stable blood sugar levels, which is good, so they rate well or "low" on the Glycemic Index. On the other hand, carbs that break down too quickly cause your insulin levels to spike, and high insulin levels cause your body to store fat, so these carbs are given higher glycemic values. These "bad" carbs also leave you hungry soon after a meal, so if you're looking to lose weight, you should seek to incorporate more "good" carbs with low glycemic values to keep your blood sugar levels stable and you metabolism burning strong.

The NutriSystem Nourish meal plan features low Glycemic Index foods and optimal amounts of protein to help keep your blood sugar levels stable and your metabolism burning strong.

NTRI is a major momo with 1867% earnings growth in 2005, and 212% expected earnings growth for 2006, although that estimate looks conservative because it recently beat the quarterly estimate by 50%.

NTRI operating margin is 12.5% vs 4% for the industry, ROE is 55.6% vs 12.68% for the industry. Turnover is 40.83 vs 7.58 for the industry.

This company is at the top of my momo list because of its quadruple digit earnings growth.

I'm looking to ride this bull until its earnings and guidance start to match analyst estimates.

DISCLOSURE: I am long NTRI .