Herbalife Outlook: Weak Technicals, Strong Fundamentals, and Mixed Analyst Views

Market SnapshotTakeaway: Herbalife's technicals are weak with an internal diagnostic score (0-10) of 2.89, while fundamentals remain strong with an internal diagnostic score of 9.99. Analyst views are mixed, and the market trend shows a price rise.

News Highlights

Recent news has focused on the health care sector more broadly than Herbalife itself. For example:

AsyncHealth AI for Mental Health: A start-up has launched an AI-based platform to streamline mental health care delivery, indicating rising investment and innovation in this area. Stanford Health Bond Sale: Stanford Health will raise $424.9 million through a municipal bond sale to fund facility projects, which highlights ongoing capital investment in the health care infrastructure. Arvinas and Pfizer Trial Success: A key trial for a breast cancer drug showed a 2.9-month improvement in progression-free survival, underscoring medical innovation but not directly impacting Herbalife.

While these stories don’t directly relate to Herbalife, they suggest continued attention to health care and innovation, potentially influencing investor sentiment.

Analyst Views & Fundamentals

Analyst Ratings Average (simple mean) rating score: 4.00 Weighted (performance-weighted) rating score: 1.65 Rating consistency: There are differences among analysts. Price trend vs. expectations: The stock is currently rising (up 37.92%) but expectations are weighted toward pessimism.

Fundamental Factors

Herbalife’s fundamentals remain strong with an internal diagnostic score of 9.99. Key metrics include: Gross Profit Margin (GPM): 77.69% (internal score: 22.60) Return on Assets (ROA): 5.29% (internal score: -9.92) Revenue to Market Value (Revenue-MV): 233.66% (internal score: -2.09) Price-to-Book (PB): 31.71% (internal score: -27.11) Operating Cash Flow to Assets (CFOA): 8.71% (internal score: 6.72) Gross Profit to Operating Assets (GPOA): 108.56% (internal score: 32.30) GMAR (Gross Margin to Assets Ratio): 77.69% (internal score: 17.76) Cash Utilization (Cash-UP): 45.37% (internal score: -3.32) Price-to-Cash Flow (PCF): 364.00% (internal score: -6.14) Price-to-Book to ROE (PB-ROE): -72.21% (internal score: -29.80)

Overall, gross margin and operating efficiency are strong, but asset utilization and profitability indicators are mixed.

Money-Flow Trends

Big-money flows for Herbalife show a negative overall trend, with mixed inflow ratios across categories: Large investors: Inflow ratio of 50.67%, but trend is positive Medium investors: Inflow ratio of 48.50%, with a negative trend Small retail investors: Inflow ratio of 49.40%, with a negative trend Overall inflow ratio: 49.59%, indicating moderate outflows.

The fund-flow score is 7.9 (good), suggesting institutional money is cautiously involved despite mixed signals.

Key Technical Signals

The technical outlook for Herbalife is weak, with an internal diagnostic score of 2.89. Williams %R Overbought: Internal score of 1.49 — signaling caution with historical avg. return of -0.27% and 40.82% win rate RSI Overbought: Internal score of 4.29 — suggesting neutral rise with historical avg. return of 1.12% and 50.00% win rate

Recent chart patterns show repeated overbought signals from both WR and RSI indicators over the last five trading days (through 2025-11-26), indicating overextended conditions. The key insight is that technical momentum is weak, and bearish indicators dominate.

Conclusion

Despite Herbalife’s strong fundamentals (internal score: 9.99), the technicals remain bearish (internal score: 2.89), and analyst views are mixed. With overbought indicators on the chart and negative fund-flow trends, investors should consider waiting for a pull-back before taking positions. Watch for any upcoming earnings or guidance updates, as these could provide a catalyst for a turnaround in sentiment.