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Sidoti Upgrades Nu Skin Enterprises to ‘Buy’

Gabriel Kane - Author

Dec. 12 2016, Updated 8:06 a.m. ET

Price movement

Nu Skin Enterprises (NUS) has a market cap of $2.7 billion. It rose 3.1% to close at $49.32 per share on December 8, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.8%, -7.9%, and 34.7%, respectively, on the same day. NUS is trading 6.3% below its 20-day moving average, 15.4% below its 50-day moving average, and 2.0% above its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap ETF (VB) invests 0.09% of its holdings in NUS. The YTD price movement of VB was 21.1% on December 8. The market caps of NUS’s competitors are as follows:

  • Illumina (ILMN) — $18.1 billion
  • Herbalife (HLF) — $4.8 billion
  • Avon Products (AVP) — $2.4 billion

NUS’s rating

On December 8, 2016, Sidoti upgraded Nu Skin Enterprises’ rating to a “buy” from “neutral.” Also, it increased the stock’s price target to $59 from $52 per share.

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Performance of Nu Skin Enterprises in 3Q16

Nu Skin Enterprises (NUS) reported 3Q16 revenue of $604.2 million, a rise of 5.8% from the $571.3 million reported in 3Q15. Sales for Greater China, North Asia, the Americas, and EMEA (Europe, the Middle East, and Africa) rose 14.7%, 24.4%, 0.71%, and 4.5%, respectively. Sales for South Asia–Pacific fell 34.9% between 3Q15 and 3Q16.

The company’s gross profit margin and operating margin rose 590 basis points and 620 basis points, respectively, between 2Q16 and 3Q16. The change in gross margin and operating margin was due to China’s inventory charge.

Nu Skin Enterprises’ net income and EPS (earnings per share) rose to $56.9 million and $0.98, respectively, in 3Q16, compared with $16.3 million and $0.28 in 3Q15. NUS’s cash and cash equivalents rose 78.6%, and its inventories fell 4.5% between 4Q15 and 3Q16.


Nu Skin Enterprises (NUS) has made the following projections:

  • revenue of $550 million–$570 million for 4Q16, which assumes a negative currency impact of 0.0%–2.0%
  • EPS of $0.77–$0.81 for 4Q16
  • revenue of $2.2 billion–$2.3 billion, which includes a negative foreign currency impact of ~2.0% for fiscal 2016

Next, we’ll take a look at Lululemon Athletica (LULU).


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