Medifast produces and sells weight loss and healthy living products. The $2 billion company has seen excellent growth, with many consumers looking for ways to manage their weight.
Shares of MED can be volatile, but the rewards have also been big. The stock is up 346% over the last five years, even counting the stock’s 50% pullback from its May 2021 all-time high.
Approximately 50% of pullbacks have been good long-term buy points, but investors should be prepared to hold MED through some volatile ups and downs. The stock has seen several 60% to 80% retracements from an all-time high over the past two decades before trending to fresh highs.
The company has tripled its total revenue since 2018, and the three-year average annual increase is clocking in above 38%. Analysts project that growth to slow from current levels, while remaining at a respectable average annual growth rate of 20% over the next five years.
As with Deckers, P/E ratios near 10 don’t often appear in growth stocks: Medifast has a P/E ratio of 13.1 and a forward P/E ratio of 9.9. At this rate, it’s an even better value stock option than DECK.
Medifast pays the highest dividend on our list, with a current yield of 3.6%. Dividend payouts have increased annually since 2015.