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 $28.9 million.
  • NUS has traded 95,131 shares today.
  • NUS is trading at 2.06 times the normal volume for the stock at this time of day.
  • NUS is trading at a new low 3.04% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NUS with the Ticky from Trade-Ideas. See the FREE profile for NUS NOW at Trade-Ideas

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 3.6%. NUS has a PE ratio of 16. 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 1.4 million shares per day over the past 30 days. Nu Skin has a market cap of $2.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.61 and a short float of 18.8% with 13.76 days to cover. Shares are down 11.9% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 145.06% to $82.36 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 -61.59%.
  • Although NUS's debt-to-equity ratio of 0.29 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 0.86 is somewhat weak and could be cause for future problems.
  • NU SKIN ENTERPRISES has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue 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. For the next year, the market is expecting a contraction of 6.8% in earnings ($2.90 versus $3.11).
  • 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 76.2% when compared to the same quarter one year ago, falling from $68.31 million to $16.27 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.