What Happened?

A number of stocks fell in the afternoon session after the latest jobs report showed nonfarm payrolls rose by only 22,000, significantly below the forecasted 75,000. 

This figure, coupled with an unemployment rate that climbed to 4.3%, its highest level since December 2021, paints a picture of a cooling U.S. economy. The disappointing data suggests that employers are growing more cautious about hiring amidst an uncertain economic environment, which has been influenced by factors such as persistent inflation and trade tariffs. While the weak report increases the likelihood that the Federal Reserve will cut interest rates to stimulate the economy, it also fuels broader concerns about economic health and consumer confidence, leading to market volatility as investors digest the implications of a potential slowdown.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Beverages, Alcohol, and Tobacco company Celsius (NASDAQ: CELH) fell 2.6%. Is now the time to buy Celsius? Access our full analysis report here, it’s free.
• Beverages, Alcohol, and Tobacco company Zevia (NYSE: ZVIA) fell 3.8%. Is now the time to buy Zevia? Access our full analysis report here, it’s free.
• Personal Care company Herbalife (NYSE: HLF) fell 4.4%. Is now the time to buy Herbalife? Access our full analysis report here, it’s free.

Zooming In On Herbalife (HLF)

Herbalife’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 8.5% on the news that Mizuho analysts raised their price target on the stock. The firm increased its price objective to $10.00 from $9.00, while maintaining a "Neutral" rating on the shares. This more optimistic price outlook comes amid positive signs for the supplement market. A recent survey conducted by Herbalife revealed that four out of five people in the Asia-Pacific region take health supplements regularly, indicating growing popularity. This data, gathered from 9,000 respondents across 11 markets, suggests strong consumer interest in preventive health products. The sentiment from Mizuho adds to a generally favorable view from the analyst community, with a consensus "Buy" rating reported as of August 28.

Herbalife is up 46.4% since the beginning of the year, but at $9.78 per share, it is still trading 9.7% below its 52-week high of $10.83 from July 2025. Investors who bought $1,000 worth of Herbalife’s shares 5 years ago would now be looking at an investment worth $199.75.

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