Are Investors Undervaluing Nu Skin Enterprises (NUS) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Nu Skin Enterprises (NUS) is a stock many investors are watching right now. NUS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.95. This compares to its industry's average Forward P/E of 31.08. NUS's Forward P/E has been as high as 16.87 and as low as 8.89, with a median of 12.94, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NUS has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Nu Skin Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, NUS sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
