Nu Skin (NUS) Falls Further As It's Water-Logged And Getting Wetter

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 or Stephanie Link.

Trade-Ideas LLC identified Nu Skin ( NUS) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $107.6 million.
  • NUS has traded 1.3 million shares today.
  • NUS traded in a range 287.4% of the normal price range with a price range of $10.15.
  • NUS traded below its daily resistance level (quality: 54 days, meaning that the stock is crossing a resistance level set by the last 54 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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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 0.9%. NUS has a PE ratio of 27.9. Currently there are 6 analysts that rate Nu Skin a buy, no analysts rate it a sell, and 1 rates 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 $8.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.43 and a short float of 3.3% with 1.82 days to cover. Shares are down 1.3% 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 robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • NUS's very impressive revenue growth greatly exceeded the industry average of 3.0%. Since the same quarter one year prior, revenues leaped by 76.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 106.89% and other important driving factors, this stock has surged by 237.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NUS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NU SKIN ENTERPRISES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NU SKIN ENTERPRISES increased its bottom line by earning $3.52 versus $2.37 in the prior year. This year, the market expects an improvement in earnings ($5.82 versus $3.52).
  • 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 104.7% when compared to the same quarter one year prior, rising from $54.18 million to $110.90 million.
  • The gross profit margin for NU SKIN ENTERPRISES is currently very high, coming in at 85.84%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.95% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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