Shares of Nu Skin Enterprises, Inc. (NUS) reached a new 52-week high of $140.50 on Jan 13 and eventually closed at $136.01. The increased momentum in the shares came after Nu Skin escaped the list of companies accused of false weight-loss product claims by the Federal Trade Commission (FTC). In fact, shares of this nutrition company have been rising ever since the company provided a strong fiscal 2014 guidance on Nov 21.
The company’s long-term estimated earnings per share (EPS) growth rate is 18.66%. Average volume of shares traded over the last three months came in at approximately 820K.
Growth Drivers
On Jan 7, CNBC reported that Nu Skin Enterprises, Inc. (NYSE:NUS) was not included in the list of companies investigated by the FTC for falsely advertising weight-loss products. FTC is an independent U.S. government agency, which protects consumers and eliminates or prevents anticompetitive business practices. Like Nu Skin, other health product retailers such as USANA Health Sciences Inc. (USNA) and Herbalife Ltd (HLF) came out clean in the investigation.
Last week, FTC announced its plans to release the details of companies who follow deceptive advertising practices for weight loss products. The government agency did not name specific companies, though CNBC confirmed that Nu Skin was not on the list.
This Zacks Rank #1 (Strong Buy) company has been delivering impressive earnings and revenue growth since 2010. Nu Skin’s earnings of $1.80 per share improved 107% from the prior-year quarter and beat the Zacks Consensus Estimate by 27% in the third quarter of 2013.
Sales increased 76% and were way ahead of the Zacks Consensus Estimate, owing to the successful execution of ageLOC TR90 weight management system. The company also raised its 2013 revenue and earnings guidance, cashing in on the performance of the ageLOC product.
The company launched the ageLOC TR90 weight management system in Greater China and South Asia/Pacific regions in Sep 2013 and generated approximately $205 million sales in the third quarter of 2013. Nu Skin’s ageLOC anti-aging product is a weight management and body shaping system and is the latest in the company’s anti-aging product line.
The company expects this momentum to continue through 2014, which prompted it to issue a strong fiscal 2014 guidance. Nu Skin Enterprises, Inc. (NYSE:NUS) expects earnings per share to grow 25%-30% on a year-over-year basis to $7.25 – $7.50 for fiscal 2014. Revenues for fiscal 2014 are expected in the range of $3.9 – $4.0 billion, up 22% – 25% from the prior year, riding on the success of the ageLOC TR90 weight management system.
Other Stocks to Consider
Conns Inc. (CONN) with a Zacks Rank #1 is also worth considering.
CONNS INC (CONN): Free Stock Analysis Report
HERBALIFE LTD (HLF): Free Stock Analysis Report
NU SKIN ENTERP (NUS): Free Stock Analysis Report
USANA HLTH SCI (USNA): Free Stock Analysis Report
