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Are Investors Undervaluing Nu Skin Enterprises (NUS) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Nu Skin Enterprises (NUS - Free Report) . NUS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 17.29 right now. For comparison, its industry sports an average P/E of 35.80. Over the past 52 weeks, NUS's Forward P/E has been as high as 19.44 and as low as 5.57, with a median of 12.30.

NUS is also sporting a PEG ratio of 1.61. 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. NUS's PEG compares to its industry's average PEG of 4.38. Over the last 12 months, NUS's PEG has been as high as 11.50 and as low as 0.98, with a median of 1.42.

Another notable valuation metric for NUS is its P/B ratio of 3.05. 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. This stock's P/B looks solid versus its industry's average P/B of 7.54. Within the past 52 weeks, NUS's P/B has been as high as 3.11 and as low as 0.80, with a median of 2.57.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NUS has a P/S ratio of 1.05. This compares to its industry's average P/S of 2.06.

Finally, investors will want to recognize that NUS has a P/CF ratio of 11.46. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NUS's current P/CF looks attractive when compared to its industry's average P/CF of 27.97. Within the past 12 months, NUS's P/CF has been as high as 13.44 and as low as 2.79, with a median of 9.89.

These are just a handful of the figures considered in Nu Skin Enterprises's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NUS is an impressive value stock right now.


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