Market analysts expect Herbalife to have steady growth in 2019. Herbalife is a company that deals with nutritional products. It has five different revenue sections. The company has seen a drop of -1.24% of the total stock since the beginning of the year. On January 29, the closing share was $58.22.
It indicated a further -0.65% drop in the capital. Any short-sighted investor would be obliged to sell at this point. However, stock analysts estimate the price to get to $65 in another 12 months easily.
This analysis comes after the 45.6% value the stock has garnered over the last 12 months. A lot of investors have enjoyed this period. During September 2018, the company took everyone by surprise when it registered a $0.74 per share as they expected $0.67. It led to the quarterly revenues hiking to $1.34 billion.
During a similar time the previous year, the company had only witnessed $1.09 billion in revenues. The last six months have seen the company stock maintain an 11.45% growth keeping a 48.25% distance from the closest low. Currently, the stock trades higher than its 200 days moving average giving a clear long term view of the capital.
But what would be the cause of this anticipated growth?
The growth may be attributed to the use of a direct selling business model into their business. This model has helped the company create a solid positive reputation to their business and get their products to reach more consumers. So, how does use of a direct selling business model affect the growth of Herbalife?
Herbalife Nutrition is a brand widely recognized in more than 90 countries. For close to 40 years, Herbalife has been developing and nurturing their relationship with direct clients all over the world.
They make use of independent distributors who provide already recognizable products to end consumers who may not have the opportunity to purchase the product. The independent distributors do their marketing promotions that bring about consumers who are engaged in a very personal way of creating trust and most likely leading to a chain of return client.
Provides Flexible working options to Sales Representatives
The company does not regulate the working hours of their independent sales representatives. They can choose what time works best for them; be it working fulltime or part-time. In addition to that, anybody looking to increase their income can become a sales rep for Herbalife. It allows for a significant number of people to enroll and be part of the sales team.
With a significant number of sales representatives all over the world, the personal client relationship and a quality product that the company gives, Herbalife’s growth is undoubtedly expected to be on the rise.