Why Nu Skin (NUS) Stock Is Higher

NEW YORK (TheStreet) -- Shares of Nu Skin Enterprises (NUS) are up 2.43% to $88.52

The company, a direct seller that develops and distributes anti-aging personal care products and nutritional supplements in 53 markets worldwide, said its Chinese operation will "immediately resume corporate-hosted business meetings and will start accepting applications for new sales people" in May.

That comes after a review of its sales and marketing practices. 

"China is an important marketplace for Nu Skin and we are committed to operating in full compliance with China's direct selling regulations to promote long-term success," said Dan Chard, president of global sales and operations.

"We plan to continue working cooperatively with regulatory agencies and refine our training procedures to further educate our sales force on local laws and company policies," he added.

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TheStreet Ratings team rates NU SKIN ENTERPRISES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate NU SKIN ENTERPRISES (NUS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NUS's very impressive revenue growth greatly exceeded the industry average of 9.8%. Since the same quarter one year prior, revenues leaped by 79.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 108.24% and other important driving factors, this stock has surged by 69.65% 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 $5.94 versus $3.52 in the prior year. This year, the market expects an improvement in earnings ($6.40 versus $5.94).
  • 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 111.5% when compared to the same quarter one year prior, rising from $59.23 million to $125.27 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Personal Products industry and the overall market, NU SKIN ENTERPRISES's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • You can view the full analysis from the report here: NUS Ratings Report

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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