Catching Herbalife Stock at Multiyear Lows Won't Be Good for Your Health
Los Angeles-headquartered Herbalife Nutrition (NYSE: HLF) is known for its health and beauty products, and for its use of direct salespeople. While the digital age and the COVID-19 pandemic have required Herbalife to hybridize its sales strategy, the company's multilevel marketing business model remains old school in spirit and practice.
Speaking of old school, at least one tried-and-true valuation metric suggests Herbalife stock is a screaming bargain. However, informed investors should consider any metric just one piece of a much larger puzzle. Indeed, in Herbalife's case, some parts of the puzzle are a bit puzzling.
The company's latest results do answer a few questions but not in the way one might expect. Herbalife's ability to connect with new generations of buyers and sellers may be lacking, to the detriment of the company and its shareholders.
Source Fool.com