| Stock (Symbol) | Stock Price | |
Nu Skin (NUS) |
$49 |
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| Data is as of | Expected to Report | Sector |
May 2, 2012 |
July 30 |
Food & Necessities |
| Sharek’s Take | ||
 Like many stocks, Nu Skin (NUS) took it on the chin after reporting earnings this month. Some of this is because Herbalife (HLF) has had its direct-selling method “questioned” by David Einhorn. NUS uses a direct selling platform too, and investors are a little quirmish right now.Also, there’s been a lot of stocks getting hit after reporting earnings this month. Honestly, NUS was fairly valued at $60. The stock hit $60 earlier in the year and didn’t have enough juice to go higher. Now at $49, NUS has upside of 20% this year. |
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| One-Year Chart | ||
 Well, now we know what P/E NUS tops out at — 20. The stock couldn’t quite hold onto that valuation, and fell a bit after reporting last quarter.Estimates show 7% growth two quarters from now, but that’s not a concern. NUS did a lot of new business in the second half of last year, comparisons will be tough later this year. |
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| Earnings Table | ||
 Sales grew 16% last quarter, down from 23% the quarter before. Profit growth was a solid 32%. NUS has a gross profit margin of 80%.
NUS keeps beating the street. Last quarter it was by four cents, and this number had been upped in each of the last three prior quarters. |
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| Fair Value | ||
 Profit growth has not slowed yet, and might now slow. I’m keeping my Fair Value at 20 times earnings. |
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| Ten-Year Chart | ||
 One thing I’m concerned with is NUS has grown profits at only 15% a year during the last decade. True, profit growth has been great the last five years, but 13% growth expected this year isn’t much. NUS also pays a yield of 1.8%. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
12 of 18 |
Nu Skin had serious momentum last quarter and now has lost it. The stock is now undervalued by 20%. The company keeps beating the street and pays a yield of almost 2%. This is a good company, although I’m concerned profit growth could slow to 15% in the coming year. |
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Aggressive Growth Portfolio
N/A |
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