Trade-Ideas LLC identified

Nu Skin

(

NUS

) 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 $36.3 million.
  • NUS has traded 995,486 shares today.
  • NUS traded in a range 317.5% of the normal price range with a price range of $4.23.
  • NUS traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 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 3.8%. NUS has a PE ratio of 11. 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 1.2 million shares per day over the past 30 days. Nu Skin has a market cap of $2.1 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 13.2% with 8.18 days to cover. Shares are down 20.2% 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 increase in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

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.
  • 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.
  • 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. In comparison to the other companies in the Personal Products industry and the overall market, NU SKIN ENTERPRISES's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • NUS has underperformed the S&P 500 Index, declining 18.02% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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