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Nu Skin (NUS) Up More Than 15% in 6 Months: Here's Why

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Nu Skin Enterprises, Inc. (NUS - Free Report) is committed to undertaking technology advancements to drive growth. The cosmetics, beauty, personal care and wellness products’ company is gaining on well-strategized product launches. The company’s recently unveiled Nu Vision 2025 strategy bodes well.

Encouragingly, the Zacks Consensus Estimate for Nu Skin’s current financial year sales and earnings per share (EPS) suggests growth of 0.9% and 4.1%, respectively, from the year-ago reported figure. The Zacks Rank #1 (Strong Buy) stock has increased 19.6% in the past six months against the industry’s 14.3% decline. The stock has comfortably outperformed the Zacks Consumer Staples sector’s 3.8% growth in the same time period.

Let’s delve deeper.

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Innovation Driving Growth

With the help of advanced technology and well-strategized product programs, Nu Skin tries to capture greater market share and maintain growth momentum. The company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. Under the company’s beauty products category, ageLOC Spa systems and ageLOC LumiSpa skin treatment and cleansing device delivered impressive results in 2021. The company’s ageLOC beauty products contributed 48% to its beauty product category revenues and 26% to total revenues in 2021. Under the wellness category, its three top-selling products were LifePak nutritional supplements, ageLOC Youth nutritional supplements and ageLOC TR90 weight management and body-shaping system in 2021. During the second half of 2021 and continuing into 2022, the company is rolling out the Beauty Focus Collagen+ skincare supplement and ageLOC Meta nutritional supplement that improves metabolic health.

The company has been successfully launching innovative beauty devices, which has now become an important part of its growth. In 2022, management expects to roll out two connected ‘input/output’ devices. The devices will accumulate data to provide insights into consumer behavior, helping the company to provide enhanced personalized experiences for consumers. Apart from product launches, Nu Skin’s well-knit product strategies and customer retention programs have been driving growth in several market locations. The company has also been executing cost-control measures to boost its profit scope.

Nu Vision 2025 Holds Promise

Nu Vision is optimistic about its Nu Vision 2025 strategy to become the world’s leading integrated beauty and wellness company driven by a dynamic affiliate opportunity platform. The strategy is based on key strategic imperatives like EmpowerMe personalized beauty and wellness strategy with connected beauty devices, an affiliate-powered social commerce business model and the expansion of the digital platform. The company’s EmpowerMe strategy enables affiliates to attract, connect and nurture consumers. The process is designed to improve product consumption, attract new customers as well as affiliates and grow recurring revenues while increasing lifetime value.

We believe that the above-mentioned upsides are likely to keep working for Nu Skin.

3 Hot Staple Bets

Some better-ranked stocks are Tyson Foods, Inc. (TSN - Free Report) , Pilgrim’s Pride (PPC - Free Report) and Flowers Foods (FLO - Free Report) .

Tyson Foods, a meat provider, currently sports a Zacks Rank #1. Shares of Tyson Foods have increased 14.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Tyson Foods’ current financial year sales and EPS suggests growth of 9.5% and 5.6%, respectively, from the year-ago reported figure. TSN has a trailing four-quarter earnings surprise of 32.2%, on average.

Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products, sports a Zacks Rank #1. Shares of Pilgrim’s Pride have declined 13% in the past six months.

The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial year EPS suggests growth of 19.7% from the year-ago reported number. PPC has a trailing four-quarter earnings surprise of 24.9%, on average.

Flowers Foods, the producer and marketer of packaged bakery products, currently carries a Zacks Rank #2 (Buy). Shares of Flowers Foods have increased 5.3% in the past six months.

The Zacks Consensus Estimate for Flowers Foods’ current financial year sales and EPS suggests growth of 7.2% and 4%, respectively, from the year-ago reported figure. FLO has a trailing four-quarter earnings surprise of 9%, on average.

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