Back to top

Image: Bigstock

Here's Why Nu Skin Stock is Up More Than 20% in Three Months

Read MoreHide Full Article

Nu Skin Enterprises, Inc. (NUS - Free Report) is in solid shape, courtesy of its efforts to enhance customer base. Moreover, Nu Skin is optimistic about strength in its sales leaders, which are driving customer base expansion. Also, the company expects its solid product pipe line to boost growth in the second half of 2020.

Given an above expected year-to-date performance and the aforementioned upsides, management recently raised its 2020 outlook. The company expects 2020 revenues in the range of $2.37-$2.45 billion. Further, 2020 earnings are projected in the range of $2.85-$3.10 per share.

Moreover, analysts are optimistic regarding the stock’s performance. The Zacks Consensus Estimate for 2020 earnings improved 20.4% to $3.01 per share in the past 30 days. Clearly, these upsides have boosted investors’ sentiments as shares of Nu Skin have surged 21.6% in the past three months compared with the industry’s growth of 5.3%.

Let’s dive deeper.

What’s Driving Nu Skin’s Performance?

Nu Skin sells and distributes products through a network of sales leaders and customers. It is focused on empowering business through product launches and engaging technology platforms among other initiatives. In fact, it rolled out online leadership, training and education programs in Mainland China for its sales leaders. Moreover, the company has been conducting a number of promotional seminars online.

Also, Nu Skin’s focus on enhancing customer experience across various digital platforms bode well. In this regard, the company plans to launch VERA, a digital tool during the second half of 2020. The tool is aimed at providing personalized recommendation for its products to the customers. During the second quarter of 2020, Nu Skin launched a new customer reward program called enJoy in Southeast Asia and Mainland China. Management expects to attain long-term loyalty via redeemable rewards points alongside improving customer relationships with the help of this program. In fact, the company expects to launch enJoy in the United States during the second half of 2020. Notably, Nu Skin’s customer base increased 29% year over year to 1,499,900 in the second quarter.

With the help of advanced technology and well-strategized product programs, Nu Skin tries to capture greater market share and maintain growth momentum. In fact, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. During the fourth quarter of 2020, it plans preview a new at-home beauty device, ageLOC that aims to provide customers with an on-the-go treatment for youthful skin. Additionally, management expects to launch a new bio adaptive skincare line under the Nutricentials brand by the fourth quarter. Apart from these, management has also put in place new leadership incentives system for to enhance productivity of sales leaders.

We believe that robust product launches along with well-knit growth strategies and customer retention programs will continue aiding this Zacks Rank #2 (Buy) company’s performance in the future.

Some Solid Staple Picks

TreeHouse Foods (THS - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 7.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Conagra Brands (CAG - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 7%.

Helen of Troy (HELE - Free Report) carries a Zacks Rank #2 and has a long-term earnings growth rate of 6.5%.

The Hottest Tech Mega-Trend of All                

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>