Should Value Investors Buy Nu Skin Enterprises (NUS) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Nu Skin Enterprises (NUS). NUS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.27, while its industry has an average P/E of 33.95. NUS's Forward P/E has been as high as 19.44 and as low as 5.57, with a median of 14.27, all within the past year.
Investors will also notice that NUS has a PEG ratio of 1.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NUS's PEG compares to its industry's average PEG of 4.15. Over the last 12 months, NUS's PEG has been as high as 11.50 and as low as 0.98, with a median of 2.67.
We should also highlight that NUS has a P/B ratio of 3.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.54. NUS's P/B has been as high as 3.47 and as low as 0.80, with a median of 2.57, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NUS has a P/S ratio of 1.12. This compares to its industry's average P/S of 2.71.
Finally, we should also recognize that NUS has a P/CF ratio of 11.74. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 27.97. NUS's P/CF has been as high as 12.63 and as low as 2.79, with a median of 9.89, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Nu Skin Enterprises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NUS feels like a great value stock at the moment.
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