Here's Why Nu Skin (NUS) Stock is Up More Than 40% in a Month
Nu Skin Enterprises, Inc. NUS is well positioned on the back of improved trends in the Mainland China region as restrictions related to coronavirus are being lifted gradually. Apart from this, the company’s efforts to enhance customer base along with effective product launches are yielding.
Clearly, these upsides have boosted investors’ sentiments as shares of Nu Skin have surged 57% in the past three months against the industry’s decline of 0.1%. In fact, the stock has rallied 43.2% in the past month. Moreover, analysts are optimistic regarding the stock’s performance. The Zacks Consensus Estimate for 2020 earnings improved a couple of cents to $2.23 per share in the past 7 days.
Factors Working Well for Nu Skin
Nu Skin, which has long been struggling with its Mainland China performance, is seeing improved trends in the region. This can be attributed to restrictions related to coronavirus-related restrictions being lifted gradually in the region. In fact, management expects this trend to continue in other markets as well. Improved trends in the region along with global preview of its new beauty device (late in 2020) are likely to enable Nu Skin to return to growth by the year end.
Nu Skin, which sells and distributes products through a network of sales leaders and customers, is focused on empowering them through engaging technology platforms among other initiatives. Recently, the company rolled out an online leadership, training and education programs in Mainland China for its sales leaders. Moreover, Nu Skin has been conducting a number of promotional seminars online. Importantly, the company has also put in place new leadership incentives system to enhance productivity of sales leaders.
Apart from this, management is committed toward enhancing customer experience across various digital platforms. In this regard, the company is on track to launch VERA, a digital tool to provide personalized recommendation for its products to the customers.
Further, with the help of advanced technology and well-strategized product programs Nu Skin tries to capture greater market share and maintain growth momentum. In fact, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. In connection with this, the launch of the company’s revolutionary ageLOC LumiSpa along with the re-launch of Galvanic Spa device has been a success. By the fourth quarter of 2020, management plans to launch a new at-home beauty device, ageLOC which aims to provide customers with an on-the-go treatment for youthful skin. Additionally, management expects to launch a new bioadaptive skincare line under the Nutricentials brand.
We believe that, robust product launches along with well-knit growth strategies and customer retention programs will continue aiding this Zacks Rank #2 (Buy) company’s performance in the future.
Other Solid Consumer Staple Bets
The Kraft Heinz Company KHC, with a Zacks Rank #2, has a long-term earnings growth rate of 6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Campbell Soup Company CPB, with a Zacks Rank #2, has a long-term earnings growth rate of 8%.
The J. M. Smucker Company SJM, with a Zacks Rank #2, has a long-term earnings growth rate of 2.2%.
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