| Stock (Symbol) | Stock Price | |
Nu Skin (NUS) |
$74 |
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| Data is as of | Expected to Report | Sector |
May 30, 2014 |
Jul 28 – Aug 02 |
Food & Necessities |
| Sharek’s Take | ||
 Nu Skin (NUS), a developer and distributor of anti-aging skin products, recently got investigated in China for illegal sales tactics (pyramid scheme sales practices). In the end China only fined Nu Skin $540,000 but the bad part was that NUS shut down its China distributor activity during the investigation, and will now resume activity this quarter. So, estimates fell again, but business will soon be back to normal. This stock has great upside right now but needs momentum to get rolling. I think growth will accelerate, estimates will increase, and NUS’s P/E will go from 12 to 18. |
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| One-Year Chart | ||
 I think this Est. LTG of 9% is way too low. This company has great skin care products and is expanding rapidly in Asia (especially China). Stock’s a good deal at 12 times earnings. NUS has no momentum now, it’s just sitting there. |
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| Earnings Table | ||
 Nu Skin’s sales grew 22% last quarter, profits increased 17%. The company had 63% sales growth in China.Nu Skin always beats the street — and even did so last quarter. Unfortunately these estimates were lowered earlier. Annual Profit Estimates fell again but I think the worse is behind them. NUS guided analysts estimates from $1.43 to $1.25, and they ended up settling with a mean of $1.30. Still, that made the stock fall. Quarterly growth looks bad but I think we are at a bottom and profit growth can kick-start again at anytime. |
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| Fair Value | ||
 Nu Skin deserves a better P/E but investors didn’t like that the company lowered estimates. I think it’s just underpromising to overdeliver. I bet the company does better next quarter and the stock pops. |
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| Ten-Year Chart | ||
 Profits have compounded at 19% a year for the last decade, but stock growth needs to catch up. I think it will. Notice how hot the stock was before the Chinese inquiry. I bet this is just a hiccup. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
14 of 24 |
Nu Skin is taking a breather right now. The stock first got hit from bad news out of China, but then when the news wasn’t too bad the stock didn’t recover. There’s solid upside potential now, the stock just needs to get a little momentum. NUS is ranked 14th of 24 stocks in the Growth Portfolio Power Rankings. I sold it from the Aggressive Growth Portfolio recently because it wasn’t moving and will likely re-buy it for this portfolio once the stock gains momentum. |
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Aggressive Growth Portfolio
N/A |
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