Investors Find Fat Gains in Nutrition Stocks

By the tickerspy.com Staff

Recent news in the nutrition sector helped select stocks buck the market.

Obesity is a problem in the United States, and with a growing mainstream push for healthy living, a number of U.S.-listed nutrition stocks could see some upside. Today, isolated news is sending shares of select stocks up as much as 8% as the industry closes the gap on the S&P 500.

As a whole, the Nutrition Product Stocks Index is up by 1.6%. It is currently lagging the S&P by -4% over the last month, however a look at the Index's six-month chart shows that it has remained ahead of the benchmark consistently over the longer time horizon.

Excluding a -4% drop by American Oriental Bioengineering (NYSE: AOB - News), whose products range from prescription antivirals to soy-based wellness enhancing drinks and tablets, the sector is largely moving higher for the session.

Mannatech (NASDAQ: MTEX - News) announced a new line of PhytoBurst soft chews - energy boosting nutritional supplements aimed at the on-the-go market. Investors are bidding up shares by 8% on the news, enough to turn positive over the last five sessions.

China Sky One Medical (NASDAQ: CSKI - News) is the sector's top performer over the last week, up by more than 27%. Shares are up by 5% in today's session alone after the company announced better-than-expected Q3 earnings. China Sky One Medical earned 74 cents a share on $43.2 million of revenue, topping EPS consensus by 8 cents and sales estimates by more than 15%.

In the last five trading days, vertically integrated nutritional products manufacturer and retailer NBTY (NYSE: NTY - News), science-based nutritional and personal care company USANA Health Systems (NASDAQ: USNA - News), and weight management and energy supplement player Herbalife (NYSE: HLF - News) are all up by 6% or more.

Online nutritional product retailer Vitacost.com (NASDAQ: VITC - News) is now off by a third since its September IPO. The stock has weighed on the 2009 IPOs Index, which is lagging the S&P 500 by -6% over the last month.

Biotechnology Stocks Index component Vivus (NASDAQ: VVUS - News) has been in focus recently as investors await further developments relating to trials of its obesity treatment Qnexa. The stock is now -35% from its 52-week high.