10 Best Performing Weight Loss Companies And Their Programs

The 10 best performing weight loss companies have found success in an increasingly competitive environment, one which is pitting supplement providers, medical device makers, weight loss services providers, and fitness providers against each other in a no-holds-barred, fat melting melee.

These companies are also forced to compete against top weight loss diets that can be found online, and it seems like there’s a new fad diet coming out nearly every week. There’s the DASH (anti-high blood pressure) diet, the Zone (low glycemic load) diet, the Paleo (natural foods) diet, the ketogenic (low-carb) diet, the vegan (non-animal products) diet, the Dukan (high protein) diet, and many more. Easy diet plans, recipes, and program calculators for any of these diets are freely available online.

Amid that backdrop, it can be challenging for the best performing weight loss companies to get eyeballs on their own programs or products, and more importantly, to convince consumers that it’s worth spending money on them to try and shed their excess pounds. Convenience and simplicity are often where these companies shine, which makes them ideal for busy people who don’t want to face the high confront of having to shop for new foods, learn new recipes, and map out and stick to meal plans. For other companies, primarily fitness providers and supplement companies, they are not directly competing against diet plans, but rather, often work in concert with them.

One thing that all of these companies do have going for them is the size of the weight loss market, which is expected to top $200 billion by 2019, according to MarketsandMarkets. U.S obesity figures are horrifying, with nearly 36% of adults being obese and just under 69% being overweight or obese according to the National Institutes of Health. That ranks the U.S as the most obese country in the developed world. Hispanic and black obesity rates are particularly high in the U.S, with 77% of Hispanic adults being overweight, while nearly half of all African Americans (47.8%) are obese. A shocking 57% of black women in the U.S are obese. On the other hand, just 12.6% of Asian Americans are obese. Another startling statistic is that the average U.S female now weighs more than the average U.S male did 50 years ago, checking in at 166.2 pounds.

On the following pages, we’ll rank the best performing weight loss companies and share a little bit about their programs or products. While we believe their stock performance is certainly connected in some regards to the effectiveness of their offerings, providing a valuable gauge for those looking for weight loss options, there are certainly other factors in play as well, and certain segments of the market are experiencing stronger growth than others, which will be reflected in stock prices.

For further health-related reading, including some companies that are also tackling weight-related issues, don’t miss our list of the 11 Largest Pharmaceutical Companies In The World.

10. Obalon Therapeutics Inc (NASDAQ:OBLN)

1-Year Returns: -39.93%

While the company’s 1-year returns aren’t very impressive, Obalon Therapeutics Inc (NASDAQ:OBLN)’s Balloon System is. The company’s FDA-approved swallowable balloons take up space in the patient’s stomach for as long as six months, curbing their desire to eat. Studies showed that patients lost about twice as much weight with the balloons than without, in conjunction with exercise and a diet plan. The intragastric balloon market is expected to swell (groan?) to $270 million by 2024.

9. Orexigen Therapeutics, Inc. (NASDAQ:OREX)

1-Year Returns: -39.64%

Orexigen Therapeutics, Inc. (NASDAQ:OREX) is another biopharmaceutical company focused on thinning out obesity. The company’s Contrave (Mysimba in Europe), which is a combination of naltrexone HCI and bupropion HCl, is a prescription treatment for obese adults. While shares of Orexigen Therapeutics, Inc. (NASDAQ:OREX) are down by nearly 40% over the past year, they’re off to a roaring start in 2017, gaining over 143%. The company provided a business update for the year at the beginning of January, and has launched a direct-to-consumer ad campaign shedding light on the connection between the brain and hunger/food cravings, and how Contrave can help quell them.

8. Herbalife Ltd. (NYSE:HLF)

1-Year Returns: -5.42%

While Herbalife Ltd. (NYSE:HLF) has yet to collapse as Bill Ackman is banking, the company’s stock performance has been poor, with its 1-year losses standing at 5.42% and its 5-year losses topping 22%. The multi-level marketing health products company has over 500,000 independent distributors, though the vast majority of them (86%) don’t make any money (ostensibly because they only buy products at a discount for themselves and aren’t trying to make additional money through sales to others). Among the company’s weight management products are full-blown programs, as well as snacks, protein powders, and pills to stabilize blood sugar levels and limit food cravings.

7. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)

1-Year Returns: -4.64%

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has a number of treatments in its pipeline, with its weight loss treatment Belviq, which was approved by the FDA back in 2012, being the first to reach market. However, sales of the drug were sluggish, leading to the ouster of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s CEO and co-founder last March, and prompting Arena to sell the development and marketing rights for the drug to Eisai in January, landing it a $23 million payment and sparing it further costs associated with expanding the market for the drug. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is still poised to benefit from Belviq’s potential success through royalty payments that could reach as much as 18.5% of the drug’s global sales. JMP Securities’ Jason Butler viewed the deal as being favorable for Arena Pharmaceuticals.

6. Nature’s Sunshine Prod. (NASDAQ:NATR)

1-Year Returns: 6.51%

Nature’s Sunshine Prod. (NASDAQ:NATR) is another multi-level marketing company that sells nutritional products. The company has a far broader selection of products than Herbalife, selling everything from colon cleansing drinks and essential oils, to weight management products like fiber capsules and protein shakes. Nature’s Sunshine Prod. (NASDAQ:NATR)’s stock was enjoying a much stronger 1-year run until yesterday, when it plunged by 13% after the company announced a $6.7 million loss in the fourth quarter, after posting a profit in the year-ago quarter.

5. Weight Watchers International, Inc. (NYSE:WTW)

1-Year Returns: 23.62%

Shares of Weight Watchers International, Inc. (NYSE:WTW), the number 5 in our list of best performing weight loss companies had largely trended down over the past year, giving back the exceptional gains they enjoyed after Oprah took a 10% stake in the company back in October 2015. However, shares surged by 50% at the end of February/beginning of March, after NutriSystem Inc. (NASDAQ:NTRI) and then Weight Watchers International, Inc. (NYSE:WTW) itself posted strong financial results. Weight Watchers’ Q4 sales jumped by 3% while profit surged into positive territory at EPS of $0.20 thanks to a 10% boost in subscriptions year-over-year. Weight Watchers International, Inc. (NYSE:WTW) uses a comprehensive points-based system that makes managing food intake simpler for its subscribers, who also have access to in-person meetings.

4. Nutraceutical Int’l Corp. (NASDAQ:NUTR)

1-Year Returns: 34.13%

Nutraceutical Int’l Corp. (NASDAQ:NUTR), the next one in our list of best performing weight loss companies sells a number of health-focused dietary options, including its Paleo Planet brand of plant-based, paleo diet-compliant foods. Shares of the company have more than doubled since late-February 2015, and Nutraceutical Int’l Corp. (NASDAQ:NUTR) began making quarterly dividend payments of $0.125 in December, providing a forward yield of 1.51%. However, Nutraceutical Int’l Corp. (NASDAQ:NUTR) showed only slight year-over-year growth in its latest earnings report amid the crowded health products market, with sales rising by 1% to $56.6 million and net income coming in flat at $4.2 million.

3. Planet Fitness Inc (NYSE:PLNT)

1-Year Returns: 34.59%

Planet Fitness Inc (NYSE:PLNT) is the youngest stock in this list of best performing weight loss companies, with its IPO having landed in August 2015. The company has been aggressive in expanding the number of fitness centers that it operates, though that growth slowed in 2016. Shares are down in trading today, dragging down the 1-year returns slightly, as Planet Fitness Inc (NYSE:PLNT) just announced a secondary offering of 15 million shares. While there are some concerns about the company’s leverage, Cowen analyst Oliver Chen recently reiterated an ‘Outperform’ rating on the stock and said he would buy shares on further weakness.

2. Medifast Inc (NYSE:MED)

1-Year Returns: 43.58%

Medifast Inc (NYSE:MED) lands in second spot, with 1-year returns of over 43%. Founded over 35 years ago, Medifast Inc (NYSE:MED) uses a strict meal plan of nutrient-dense food that has been clinically proven to provide superior weight loss compared to other diets with the same amount of calories. Medifast Inc (NYSE:MED) believes it has tremendous growth opportunities still ahead of it, stating that it has just 1.5% share of its served market in a recent investor presentation. The company also expects to save $2.2 million annually from its corporate restructuring activities.

1. NutriSystem Inc. (NASDAQ:NTRI)

1-Year Returns: 146.94%

NutriSystem Inc. (NASDAQ:NTRI) tops the list of the best performing weight loss companies over the past year, having surged by nearly 150%. As mentioned above, the company’s strong quarterly results even helped Weight Watchers post big gains, as NutriSystem Inc. (NASDAQ:NTRI) posted Q4 revenue of $108.9 million and EPS of $0.29, both of which easily topped the consensus estimates. The company’s 2017 guidance and comments were also bullish, with expectations being for another year of double-digit growth in revenue. Craig-Hallum raised its price target on the stock to $60 from $40 after the latest earnings report, and believes interest in NutriSystem Inc. (NASDAQ:NTRI)’s core system as well as its South Beach Diet brand, which it purchased at the end of 2015, are strong. NutriSystem members can choose from over 150 high fiber, high protein food products which are shipped right to their doors. Plans also include contact with dieticians and weight loss coaches for unparalleled support.

That concludes the list of the 10 best performing weight loss companies. Have you used any of these companies’ products or services? What was your experience? Share your thoughts with our readers in the comments.

Disclosure: None