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NUS vs. EL: Which Stock Is the Better Value Option?
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Investors with an interest in Cosmetics stocks have likely encountered both Nu Skin Enterprises (NUS - Free Report) and Estee Lauder (EL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Estee Lauder has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NUS is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NUS currently has a forward P/E ratio of 15.60, while EL has a forward P/E of 45.63. We also note that NUS has a PEG ratio of 2.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EL currently has a PEG ratio of 3.83.
Another notable valuation metric for NUS is its P/B ratio of 3.21. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EL has a P/B of 19.99.
These are just a few of the metrics contributing to NUS's Value grade of A and EL'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.
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NUS vs. EL: Which Stock Is the Better Value Option?
Investors with an interest in Cosmetics stocks have likely encountered both Nu Skin Enterprises (NUS - Free Report) and Estee Lauder (EL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Nu Skin Enterprises has a Zacks Rank of #2 (Buy), while Estee Lauder has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NUS is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NUS currently has a forward P/E ratio of 15.60, while EL has a forward P/E of 45.63. We also note that NUS has a PEG ratio of 2.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EL currently has a PEG ratio of 3.83.
Another notable valuation metric for NUS is its P/B ratio of 3.21. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EL has a P/B of 19.99.
These are just a few of the metrics contributing to NUS's Value grade of A and EL'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.