Nu Skin Enterprises (NUS) is another great example of a stock with strong downward earnings momentum that the Zacks Rank nailed perfectly and warned you to stay away from plenty early.
Although NUS had been a Zacks #4 Rank (Sell) quite often in the first quarter of 2015 when shares were trading near $60, it didn’t become a #5 Rank (Strong Sell) until May after the company’s first quarter report disappointed investors.
Since then, shares have plummeted from $51 to $31. And NUS has consistently been a #5 Rank during that drop, reminding investors and traders to keep selling, before and after their 3rd quarter report on October 29.
Here’s why: the Zacks Detailed EPS estimates below tell the tale of persistent downward Earnings Estimate Revisions (EER) from analysts…
According to this data, the fall in this year’s consensus EPS number from $3.58 to $2.88 is a 19.55% drop.
And next year’s 70-cent cut to profit projections represents a 17.76% decline.
While this one-of-a-kind network marketing company may have a brighter future some day, in the near term investors should remain cautious. Just keep an eye on the Zacks Rank to let you know when the sun comes out again for NUS earnings momentum.
Kevin Cook is a Senior Stock Strategist for Zacks where he runs the Follow The Money (FTM) portfolio.
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NU SKIN ENTERP (NUS): Free Stock Analysis Report
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