According to a recent study by the Trust for America's Health, 31 states had an increase adult obesity rates, with Mississippi at the top of the list at 30.6% of the population, and no states having any reduction in obesity. Because almost all Americans believe that obesity is a major problem in the United States, it may be worth weighing your options on the following stocks to see if their potential for gain carries any weight.
Weight Watchers International (WTW), which trades on the New York Stock Exchange, is a provider of weight management services, such as exercise, and behavioral techniques, and nutritional products. The stock has a P/E of 22.66 and a PEG of 1.55. It pays a yield of 1.3%.
NutriSystem. (NTRI), which trades on NASDAQ, provides health and weight management products and services, including pre-packaged foods and counseling. The stock has a P/E of 15.93 and a PEG of 0.58.
Herbalife Ltd. (HLF) sells weight management products, nutritional supplements, and personal care products through network marketing. The stock has a P/E of 19.72 and a PEG of 0.98. It pays a yield of 1.0%.
Ediets.com Inc. (OTC:DIET) is a provider of Internet-based diet, recipe and fitness programs. Earnings have been negative. This is a very low cap and therefore very speculative stock.
Hoffmann–La Roche, which is owned by Roche Holding AG (OTC:RHHBY), makes Orlistat, marketed as Xenical, which is an obesity drug that helps to reduce the absorption of fat contained in foods. This is obviously a very small part of their overall business. The stock has a P/E of 20.9 and a yield of 1.56%.
GlaxoSmithKline plc (GSK), based in London, sells the generic form of Orlistat, called Alli, also known as tetrahydrolipstatin. This is one of a very large group of pharmaceutical products that they sell. The stock has a P/E of 13.3 and a PEG of 2.14. It pays a yield of 3.8%.
Abbott Laboratories (ABT) markets Sibutramine, sold as Meridia, an obesity drug that speeds up the metabolism and energy levels and increases serotonin and norepinephrine levels in the brain. This Illinois based company makes numerous pharmaceutical and nutritional products. The stock has a P/E of 40.88 and a PEG of 1.54. It pays a yield of 2.5%.
Disclosure: author does not own any of the above companies.