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USANA Health Sciences Inc. Message Board

  • investora2z investora2z Apr 9, 2013 11:16 AM Flag

    Nice uptrend

    The stock is very close to the 52 week high of $50.23 made in October last year. It had fallen quickly after that to the 52 week low of $30.51 on 27th December. Thereafter, the run has been great, and it is now up by around 62% already from those lows. Even on a 52 week basis it is up by 35% and has been a marked out performer compared with the S&P. The 50 DMA ($46) is above the 200 DMA of around $43 indicating technical strength. The 10 day average volume is, however, one third the 3 month average of 225K which means that the momentum is slowing down. P/E (ttm) is around 11 and the forward P/E is much lower at 8.68. The PEG of 0.53 and a low price to sales ratio of around 1 make it an attractively valued stock. The net margins are around 10%, and the quarterly revenue & net income growth is 15.50% and 40% respectively. There is no debt on books and the current ratio is 1.87. The growth in earnings and margins indicates that USNA commands pricing power in the market. The competition is increasing with several big and small companies launching new products and creating new type of products. Recently, ChromaDex Corporation (CDXC) launched a low caffeine energy drink containing its successful ingredient pterostilbene (present in successful products like BluScience). USNA needs to focus on development and launches of new product so that the growth story gets another long leg. If the stock is able to cross the 52 week high with volumes, that would be a strong signal that the uptrend may continue for a while. The metrics indicate that, despite the strong run up, it is still attractively valued. This increases the probability for the growth story to continue.

141.49-5.00(-3.41%)Sep 1 4:02 PMEDT