10 Best Performing Affordable Stocks Under $40

​3. Herbalife Ltd. (NYSE:HLF)

Price: $14.67

Forward P/E Ratio: 6.84

6-month Performance: 46.55%

Number of Hedge Fund Holders: 33

​Herbalife Ltd. (NYSE:HLF) is one of the Best Performing Affordable Stocks Under $40. On January 8, John Baumgartner from Mizuho Securities reiterated a Hold rating on the stock but raised the price target from $11 to $13. Earlier on January 6, Anthony Vendetti from Maxim Group initiated a Buy rating on Herbalife Ltd. (NYSE:HLF) with a $20 price target.

​Analysts at Mizuho noted that they adjusted price targets for the food producers. The firm believes that Herbalife Ltd. (NYSE:HLF) is expected to grow and outperform in 2026. However, Mizuho cautioned about compressed valuations. The firm believes that weak fundamentals and elevated macro uncertainty is one of the reasons why the valuations remain compressed.

​On the other hand, Maxim Group believes a turnaround is underway, which will further solidify the company’s position in the health and wellness space. The firm added that the regulatory concerns from the United States have been resolved and the company has established a closer connection with the distributors, thereby enhancing the company’s supply chain model.

​Herbalife Ltd. (NYSE:HLF) is a leading nutrition company that offers health and wellness products in approximately 95 markets worldwide. Its offerings include weight management, targeted nutrition, energy, sports, and fitness products.