Nu Skin Enterprises shares fell as much as -20% on Wednesday, after the company expressed concerns over headwinds from China’s increased scrutiny on health products.
The company, which develops and sells personal care products, revealed that it is adjusting its guidance for the year, mainly due to a dampened revenue outlook in Mainland China following the government’s 100-day campaign to review and scrutinize the health products and direct selling industries.
The increased scrutiny on the direct selling industry has reportedly led to a tightening of regulations on sales meetings - something that could adversely affect customer sentiment, as hinted by NU Skin CEO Ritch Wood. China accounted for 33% of Nu Skin’s revenue in 2018.
The company is scheduled to release its second quarter earnings reports on August 6. But as of now, Nu Skin is expecting its second-quarter earnings to range between 82 and 84 cents per share – down from its prior forecast of 91 to 98 cents per share. It now expects revenue between $622 million and $623 million, compared to its previous expectation of $660 million to $680 million.
Nu Skin has also lowered its full-year guidance. It now forecasts an earnings per share range of $3.20 to $3.35, compared to prior estimate of $3.80 to $4.05 a share. Its full year revenue expectation now sits between $2.48 billion to $2.52 billion, which is a range lower than its previous prediction of $2.76 billion to $2.81 billion.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where NUS declined for three days, in of 299 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where NUS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 25, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NUS as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
NUS broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Moving Average Convergence Divergence (MACD) for NUS just turned positive on April 17, 2024. Looking at past instances where NUS's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NUS advanced for three days, in of 294 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 242 cases where NUS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.811) is normal, around the industry mean (59.633). P/E Ratio (79.294) is within average values for comparable stocks, (196.255). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.746). Dividend Yield (0.091) settles around the average of (0.106) among similar stocks. P/S Ratio (0.341) is also within normal values, averaging (118.390).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. NUS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NUS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of personal care products and nutritional supplements
Industry HouseholdPersonalCare