Nu SKin Enterprises – Momentum (NUS)

ZacksNu SKin Enterprises (NUS) is having a great year, currently up more than 50% after shares rebounded from the recent pull back and surged back to the all-time high. With an average earnings surprise of 10% over the last four quarters and bullish 15% growth projection, this Zacks #1 Rank stock is the face of momentum.

Company Description

Nu Skin Enterprises develops and sells anti-aging and personal care items worldwide. The company was founded in 1984 and has a market cap of $2.8 billion.

Nu Skin has had a great 2011, with shares currently up more than 50% after jumping back to the all-time high. Those gains come on the heels of strong Q2 results from early August that came in ahead of expectations.

Second-Quarter Results

Revenue for the period was up 9% from last year to $424 million. Earnings also looked good, coming in at 65 cents, 10% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 9.5% over the last four quarters.

Nu Skin continues to see big gains in Asia, with sales in its largest segment, North Asia, up 12% to $$183 million. South Asia saw the biggest gain, with sales up 29% to $59 million. Europe was also solid, up 22% to $43 million.

Financial Profile

The company has used its recent earnings momentum to strengthen its financial profile, with cash and short-term investments up $60 million from last year to $233 million.

Estimates

We’ve seen some decent movement in estimates over the last few months, with the current year up 9 cents to $2.48 while the next-year estimate has added 13 cents to $2.85, a bullish 15% growth projection.

Valuation

With a PEG ratio of 1.13, NUS trades at a premium of 1, the benchmark for value.

12-Month Chart

On the chart, NUS has had a great year, recently jumping back to its all-time high in the choppy market. Take a look below.

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