Herbalife shows relatively strong fundamentals and is coming back to attractive prices.

From a fundamental viewpoint, the security is cheap with a P/E ratio of 12.8x for 2013 and 11.1x for 2014. EV/Sales ratio also underline the low valuation with a ratio at 1.35x for this year.

Herbalife is oversold and is near to its USD 59.9 support. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next resistance at USD 68.4.

Thanks to the technical pattern and Herbalife’s strong fundamentals, active investors can take a long position at the current prices. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at USD 68.4.
However, a bearish trend would regain the upper hand if the security crosses USD 59.9.