Back to top

Image: Bigstock

NUS or HELE: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Cosmetics sector might want to consider either Nu Skin Enterprises (NUS - Free Report) or Helen of Troy (HELE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Helen of Troy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NUS has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

NUS currently has a forward P/E ratio of 16.92, while HELE has a forward P/E of 20.36. We also note that NUS has a PEG ratio of 3.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HELE currently has a PEG ratio of 3.12.

Another notable valuation metric for NUS is its P/B ratio of 3.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HELE has a P/B of 4.11.

These are just a few of the metrics contributing to NUS's Value grade of B and HELE's Value grade of D.

NUS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NUS is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Helen of Troy Limited (HELE) - free report >>

Nu Skin Enterprises, Inc. (NUS) - free report >>

Published in