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Is Nu Skin Enterprises (NUS) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Nu Skin Enterprises (NUS - Free Report) . NUS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.88, while its industry has an average P/E of 40.59. Over the past 52 weeks, NUS's Forward P/E has been as high as 19.44 and as low as 5.57, with a median of 14.62.

Investors should also note that NUS holds a PEG ratio of 2.04. 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 4.97. NUS's PEG has been as high as 11.50 and as low as 0.98, with a median of 2.67, all within the past year.

We should also highlight that NUS has a P/B ratio of 3.41. 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 attractive against 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 2.83, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NUS has a P/S ratio of 1.2. This compares to its industry's average P/S of 2.99.

Finally, investors will want to recognize that NUS has a P/CF ratio of 12.47. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 27.97. Within the past 12 months, NUS's P/CF has been as high as 12.63 and as low as 2.79, with a median of 10.21.

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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