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Trade-Ideas LLC identified

Nu Skin

(

NUS

) as a weak on high relative volume 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 $53.8 million.
  • NUS has traded 1.8 million shares today.
  • NUS is trading at 55.24 times the normal volume for the stock at this time of day.
  • NUS is trading at a new low 20.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on NUS:

TheStreet Recommends

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 3%. NUS has a PE ratio of 14. Currently there is 1 analyst that rates Nu Skin a buy, 1 analyst rates it a sell, and 4 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 $2.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.87 and a short float of 10.8% with 4.05 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nu Skin as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 128.9% when compared to the same quarter one year prior, rising from $19.51 million to $44.66 million.
  • Net operating cash flow has significantly increased by 451.96% to $85.40 million when compared to the same quarter last year. In addition, NU SKIN ENTERPRISES has also vastly surpassed the industry average cash flow growth rate of 36.75%.
  • NUS's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • NU SKIN ENTERPRISES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NU SKIN ENTERPRISES reported lower earnings of $3.11 versus $5.94 in the prior year. This year, the market expects an improvement in earnings ($3.62 versus $3.11).

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