Trade-Ideas LLC identified

Nu Skin

(

NUS

) as a strong 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 $44.4 million.
  • NUS has traded 156,912 shares today.
  • NUS is trading at 2.22 times the normal volume for the stock at this time of day.
  • NUS is trading at a new high 4.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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:

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. The stock currently has a dividend yield of 4.2%. NUS has a PE ratio of 15. Currently there is 1 analyst that rates Nu Skin a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Nu Skin has been 1.3 million shares per day over the past 30 days. Nu Skin has a market cap of $1.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.56 and a short float of 20% with 8.66 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nu Skin as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable 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, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been 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.
  • The gross profit margin for NU SKIN ENTERPRISES is currently very high, coming in at 82.14%. 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, NUS's net profit margin of 6.26% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Personal Products industry average. The net income has decreased by 22.9% when compared to the same quarter one year ago, dropping from $46.51 million to $35.84 million.
  • Net operating cash flow has decreased to $80.15 million or 15.45% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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