Americans aren’t the only ones gaining weight. The World Health Organization says more than 1 billion adults are overweight worldwide – 300 million of them are obese – and that number is expected to more than double by 2015. As the fast food industry regains its footing at the same time an industry built on losing weight is bulging at the seams itself, what’s the best way to invest in the world’s expanding waistline?
There’s two ways to trade it. Jeff Macke is behind McDonald’s (MCD), saying “fast food stocks are back.” But once the weight is on, he likes NutriSystem (NTRI) as the play to get it back off. NTRI has been successful in marketing to men which is what Weight Watchers has struggled with, he says.
Guy Adami is a backer of NTRI as well for its growth potential. He also likes Weight Watchers (WTW).
Pete Najarian says one way to play it is with companies developing diabetes drugs. Orexigen Therapeutics (OREX) is working on a drug to combat belly fat, which attacks the liver and is a primary concern for diabetics. He also likes Amylin (AMLN) and ISIS Pharmaceuticals (ISIS), which are also working on diabetes drugs.
If you’re going to give into the obesity trade, go with Pepsi (PEP), Eric Bolling says. If you’re in it for the health angle, he thinks you can short Whole Foods (WFMI).
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Trader disclosure: On June 26 2007, the day this episode was taped, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Macke Owns (SWY); Najarian Owns (.VIX) Bolling Owns (BP), (T); Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures CNBC Is A Service Of NBC Universal And Dow Jones