Nu Skin (NUS, $38.60) lowers earnings and sales outlook following China's scrutiny program on health products
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.
Momentum Indicator for NUS turns positive, indicating new upward trend
NUS saw its Momentum Indicator move above the 0 level on June 27, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 95 similar instances where the indicator turned positive. In of the 95 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where NUS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 283 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 186 cases where NUS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NUS moved out of overbought territory on June 02, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for NUS turned negative on June 11, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NUS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NUS broke above its upper Bollinger Band on May 29, 2025. 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (17.380). P/E Ratio (79.294) is within average values for comparable stocks, (204.360). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.832). Dividend Yield (0.091) settles around the average of (0.107) among similar stocks. P/S Ratio (0.341) is also within normal values, averaging (116.662).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NUS’s price grows at a higher 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 85, placing this stock worse than average.
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General Information
a developer of personal care products and nutritional supplements
Industry HouseholdPersonalCare
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