Nu Skin (NUS) Highlighted As Weak On High Volume

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 $47.5 million.
  • NUS has traded 133,981 shares today.
  • NUS is trading at 3.64 times the normal volume for the stock at this time of day.
  • NUS is trading at a new low 3.08% 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.

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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 2.7%. NUS has a PE ratio of 31. Currently there is 1 analyst that rates Nu Skin a buy, 2 analysts rate it a sell, and 2 rate it a hold.

The average volume for Nu Skin has been 695,400 shares per day over the past 30 days. Nu Skin has a market cap of $2.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.44 and a short float of 12.9% with 7.38 days to cover. Shares are up 40.9% year-to-date as of the close of trading on Friday.

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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 solid stock price performance, 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 disappointing return on equity.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, NUS's share price has jumped by 31.98%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that NUS's debt-to-equity ratio is low, the quick ratio, which is currently 0.66, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for NU SKIN ENTERPRISES is currently very high, coming in at 81.02%. 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 0.70% 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 significantly underperformed when compared to that of the S&P 500 and the Personal Products industry. The net income has significantly decreased by 90.9% when compared to the same quarter one year ago, falling from $36.28 million to $3.32 million.
  • Net operating cash flow has significantly decreased to -$2.72 million or 103.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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