Medifast produces and sells weight reduction and wholesome dwelling merchandise. The $2 billion firm has seen wonderful development, with many shoppers on the lookout for methods to handle their weight.

Shares of MED will be risky, however the rewards have additionally been massive. The inventory is up 346% over the past 5 years, even counting the inventory’s 50% pullback from its Could 2021 all-time excessive.

Comparable 50% pullbacks have been good long-term purchase factors, however buyers must be ready to carry MED by way of some risky ups and downs. The inventory has seen a number of 60% to 80% retracements from an all-time excessive over the previous 20 years earlier than trending to recent highs.

The corporate has tripled its whole income since 2018, and the three-year common annual improve is clocking in above 38%. Analysts undertaking that development to gradual from present ranges, whereas remaining at a good common annual development price of 20% over the following 5 years.

As with Deckers, P/E ratios close to 10 don’t typically seem in development shares: Medifast has a P/E ratio of 13.1 and a ahead P/E ratio of 9.9. At this price, it’s a good higher worth inventory possibility than DECK.

Medifast pays the best dividend on our checklist, with a present yield of three.6%. Dividend payouts have elevated yearly since 2015.