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NUS or HELE: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Cosmetics sector might want to consider either Nu Skin Enterprises (NUS - Free Report) or Helen of Troy (HELE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Nu Skin Enterprises and Helen of Troy are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

NUS currently has a forward P/E ratio of 18.58, while HELE has a forward P/E of 19.78. We also note that NUS has a PEG ratio of 1.73. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HELE currently has a PEG ratio of 3.03.

Another notable valuation metric for NUS is its P/B ratio of 3. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HELE has a P/B of 3.99.

These metrics, and several others, help NUS earn a Value grade of B, while HELE has been given a Value grade of D.

Both NUS and HELE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NUS is the superior value option right now.


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