Nu Skin (NUS) Marked As A Barbarian At The Gate
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Nu Skin as such a stock due to the following factors:
- NUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.0 million.
- NUS has traded 422,343 shares today.
- NUS traded in a range 229% of the normal price range with a price range of $3.89.
- NUS traded above its daily resistance level (quality: 237 days, meaning that the stock is crossing a resistance level set by the last 237 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on NUS:
Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex brands worldwide. The stock currently has a dividend yield of 2.4%. NUS has a PE ratio of 18.9. Currently there is 1 analyst that rates Nu Skin a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Nu Skin has been 1.0 million shares per day over the past 30 days. Nu Skin has a market cap of $3.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 2.89 and a short float of 11.1% with 5.85 days to cover. Shares are up 33.6% year-to-date as of the close of trading on Friday.
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Analysis:
rates Nu Skin as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Although NUS's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
- The gross profit margin for NU SKIN ENTERPRISES is currently very high, coming in at 82.53%. Regardless of NUS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.62% trails the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Personal Products industry and the overall market on the basis of return on equity, NU SKIN ENTERPRISES has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Personal Products industry. The net income has significantly decreased by 62.9% when compared to the same quarter one year ago, falling from $125.27 million to $46.51 million.
- You can view the full Nu Skin Ratings Report.
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