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Is Nu Skin Enterprises (NUS) a Great Value Stock Right Now?

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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Nu Skin Enterprises (NUS - Free Report) . NUS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 15.05 right now. For comparison, its industry sports an average P/E of 34.23. Over the past year, NUS's Forward P/E has been as high as 19.44 and as low as 5.57, with a median of 13.24.

We also note that NUS holds a PEG ratio of 2.20. 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. NUS's PEG compares to its industry's average PEG of 4.19. 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.

Another valuation metric that we should highlight is NUS's P/B ratio of 3.37. 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. This stock's P/B looks solid versus its industry's average P/B of 7.54. Within the past 52 weeks, NUS's P/B has been as high as 3.64 and as low as 0.80, with a median of 2.57.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.1. This compares to its industry's average P/S of 2.3.

Finally, investors will want to recognize that NUS has a P/CF ratio of 12.20. 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. NUS's P/CF compares to its industry's average P/CF of 27.97. Over the past year, NUS's P/CF has been as high as 13.44 and as low as 2.79, with a median of 9.89.

These are just a handful of the figures considered in Nu Skin Enterprises's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NUS is an impressive value stock right now.


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