Medifast: Dividend Stock With Strong Future Growth Potential

Seeking AlphaDividend Ideas | Services Medifast: Dividend Stock With Strong Future Growth PotentialOct. 29, 2020 12:05 PM ET|| About: Medifast, Inc. (MED), Includes: HLF, TVTY, USNA, WWby: David ZanoniDavid Zanoni Margin of Safety InvestingGrowth and Income Investing For The 2020sSummaryThe large amount of overweight adults in the United States and other regions provides a significant market for Medifast's growth.
Medifast has positive revenue and earnings growth momentum that can continue in future years.
The valuation is reasonable, which should allow for more stock price appreciation while investors earn 2.9% from dividends.
The large number of overweight adults in the world creates a good opportunity for Medifast (MED) to thrive and grow for multiple years. Medifast sells various weight loss and health products designed to help people shed extra pounds. Medifast has important competitive advantages that provide the company with the ability to maintain and increase market share.
Key Stats Provide a Good Market for Medifast
Here are statistics of the high prevalence of overweight adults in the population. The World Health Organization states that the world's obesity rate tripled since 1975. About 39% of adults aged 18 and over are considered overweight worldwide. The United States has a higher prevalence, which makes it a great market for weight loss products. In the United States, 71.6% of adults aged 20 and over are considered overweight and 39.8% are considered obese. Overweight is defined as having a body mass index [BMI] of 25 -29.9 and obese is defined as having a BMI of over 30. This link shows how BMI is calculated based on height and weight.
The high prevalence of overweight people and a high interest in improving health are positive for Medifast in the United States and in other key regions throughout the world. Medifast expanded OPTAVIA into Singapore and Hong Kong in 2019. All of these regions have shown interest in solving... Read more