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Are Investors Undervaluing Nu Skin Enterprises (NUS) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Nu Skin Enterprises (NUS - Free Report) is a stock many investors are watching right now. NUS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.81 right now. For comparison, its industry sports an average P/E of 40.19. Over the last 12 months, NUS's Forward P/E has been as high as 19.44 and as low as 5.57, with a median of 14.78.

We also note that NUS holds a PEG ratio of 2.17. 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. NUS's industry has an average PEG of 4.92 right now. Within the past year, NUS's PEG has been as high as 11.50 and as low as 0.98, with a median of 2.67.

We should also highlight that NUS has a P/B ratio of 3.64. 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. This company's current P/B looks solid when compared to its industry's average P/B of 7.54. Over the past 12 months, NUS's P/B has been as high as 3.64 and as low as 0.80, with a median of 2.93.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.23. This compares to its industry's average P/S of 2.75.

Finally, investors will want to recognize that NUS has a P/CF ratio of 13.30. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive 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 13.30 and as low as 2.79, with a median of 10.57.

These are only a few of the key metrics included in Nu Skin Enterprises's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NUS looks like an impressive value stock at the moment.


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