A Health Stock with a Dividend

Health Medifast Inc. (NYSE: MED) is a specialist nutrition and health company that focuses on weight loss and healthy living. As a stock pick, it’s one of the most compelling income and growth options available today. Medifast has generated high volume trading in recent days, with investors seeing the potential in this stock’s long term growth and dividend.

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Revenue growth at Medifast has been impressive over the last five fiscal years. From yearly revenue of $272 million in 2015, the health company grew to generate over $713 million in the 2019 fiscal year. Gross income has climbed steadily throughout the same period, resulting in a 75.22% gross margin. The profitability goes all the way down to the bottom line with an EBITDA margin of 13.40%.

This profitability allows for a generous investor return. The dividend yield of 4.19% outpaces most of the market. Income from this stock could be used for reinvestment or to supplement income.

Some analysts are still skeptical of this stock, with an average target price of $88.67. However, momentum has carried the price well beyond the target, and there could be more room for growth. The stock has reached as high as $142.49 in the last year, suggesting that it’s possible to reach or even exceed that milestone.

Coronavirus is causing volatility in the stock market today. This pick might take months to generate a strong return on price alone, but the generous dividend helps to keep it attractive in the meantime.

Key Data:

  • 1 Year Price Growth: -22.77%
  • YTD Price Growth: -1.66%
  • 3 Month Price Growth: 59%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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