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Nu Skin Trading Near 52-Week Low: Should You Buy or Sell NUS Stock?
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Nu Skin Enterprises, Inc. (NUS - Free Report) has seen its shares dive as much as 38.7% in the past three months compared with the industry's drop of 26.1%. The beauty and wellness product company has also trailed the broader Zacks Consumer Staples sector and the S&P 500's respective growth of 5.7% and 4.3% during the same period. Closing the trading session at $7.06 on Friday, the stock stands close to its 52-week low of $6.72 reached on Sept. 10.
Nu Skin has also slipped below critical technical thresholds, such as its 50-day and 200-day moving averages, which are important indicators for gauging market trends and momentum. These raise investor concerns regarding NUS’ ability to navigate current market dynamics.
We note that Nu Skin is facing considerable challenges, including ongoing macroeconomic difficulties and a slow-moving direct-selling market. These obstacles, coupled with unforeseen foreign currency volatility, have impacted the company's overall performance, especially within its premium product segment.
Image Source: Zacks Investment Research
A Closer Look at Nu Skin’s Challenges
Nu Skin’s second-quarter 2024 performance was negatively impacted by macroeconomic pressures across most regions, leading to reduced consumer spending and difficulties in acquiring new customers, particularly in its premium product segment. Nu Skin also faced pressures within the direct selling industry.
These challenges, along with unfavorable currency fluctuations, contributed to a 12.2% year-over-year decline in quarterly revenues, dropping to $439.1 million in the second quarter. On a constant-currency basis, revenues fell 8%. Sales leaders were down 16% year over year to 38,592. Nu Skin’s customer base dropped 14% to 893,514. The company’s paid affiliates were down 17% to 155,486. On an adjusted basis, paid affiliates tumbled 9%.
Nu Skin’s significant global presence makes it vulnerable to fluctuating exchange rates, which can negatively impact its financial results. In the second quarter of 2024, revenues were affected by adverse currency movements, which reduced sales by 4.2%. The company expects foreign currency fluctuations to negatively impact third-quarter and full-year 2024 revenues by approximately 3-4%.
The operating environment for Nu Skin's core business remains challenging due to macroeconomic factors and pressures within the direct selling industry.
What to Expect From NUS in 2024?
Nu Skin anticipates revenues in the band of $1.73-$1.81 billion for 2024, which suggests a 12-8% decline from the year-ago period’s reported figure. Management envisions adjusted earnings per share (EPS) of 75-95 cents. The projection suggests a decline from adjusted earnings of $1.85 recorded in 2023.
For the third quarter of 2024, the company expects revenues between $430 million and $465 million, which suggests a decline of 14% to 7% from the year-ago quarter’s reported level. NUS expects adjusted earnings in the band of 15-25 cents a share in the third quarter compared with 56 cents recorded in the same period last year.
Estimates for Nu Skin Lose Sheen
The Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 60 days, analysts have lowered their estimates for the current and next fiscal year by 29.1% and 26.6% to 78 cents per share and $1.05, respectively. This downward adjustment reflects a negative sentiment among analysts and suggests potential challenges in achieving projected profitability.
What’s Next for NUS Investors?
Nu Skin is currently navigating a challenging period, with its stock performance mirroring the macroeconomic and industry-specific hurdles it faces. Although the company is making efforts to revitalize its market position through strategic initiatives, including new product launches and leveraging its Rhyz business, these measures may require time to deliver meaningful results. Investors should approach the stock with caution, monitoring whether Nu Skin’s strategies can counterbalance the current pressures. At present, Nu Skin holds a Zacks Rank #5 (Strong Sell).
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal-year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods (FLO - Free Report) , a packaged bakery food company, currently carries a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick (MKC - Free Report) is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.1% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.
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Nu Skin Trading Near 52-Week Low: Should You Buy or Sell NUS Stock?
Nu Skin Enterprises, Inc. (NUS - Free Report) has seen its shares dive as much as 38.7% in the past three months compared with the industry's drop of 26.1%. The beauty and wellness product company has also trailed the broader Zacks Consumer Staples sector and the S&P 500's respective growth of 5.7% and 4.3% during the same period. Closing the trading session at $7.06 on Friday, the stock stands close to its 52-week low of $6.72 reached on Sept. 10.
Nu Skin has also slipped below critical technical thresholds, such as its 50-day and 200-day moving averages, which are important indicators for gauging market trends and momentum. These raise investor concerns regarding NUS’ ability to navigate current market dynamics.
We note that Nu Skin is facing considerable challenges, including ongoing macroeconomic difficulties and a slow-moving direct-selling market. These obstacles, coupled with unforeseen foreign currency volatility, have impacted the company's overall performance, especially within its premium product segment.
Image Source: Zacks Investment Research
A Closer Look at Nu Skin’s Challenges
Nu Skin’s second-quarter 2024 performance was negatively impacted by macroeconomic pressures across most regions, leading to reduced consumer spending and difficulties in acquiring new customers, particularly in its premium product segment. Nu Skin also faced pressures within the direct selling industry.
These challenges, along with unfavorable currency fluctuations, contributed to a 12.2% year-over-year decline in quarterly revenues, dropping to $439.1 million in the second quarter. On a constant-currency basis, revenues fell 8%. Sales leaders were down 16% year over year to 38,592. Nu Skin’s customer base dropped 14% to 893,514. The company’s paid affiliates were down 17% to 155,486. On an adjusted basis, paid affiliates tumbled 9%.
Nu Skin’s significant global presence makes it vulnerable to fluctuating exchange rates, which can negatively impact its financial results. In the second quarter of 2024, revenues were affected by adverse currency movements, which reduced sales by 4.2%. The company expects foreign currency fluctuations to negatively impact third-quarter and full-year 2024 revenues by approximately 3-4%.
The operating environment for Nu Skin's core business remains challenging due to macroeconomic factors and pressures within the direct selling industry.
What to Expect From NUS in 2024?
Nu Skin anticipates revenues in the band of $1.73-$1.81 billion for 2024, which suggests a 12-8% decline from the year-ago period’s reported figure. Management envisions adjusted earnings per share (EPS) of 75-95 cents. The projection suggests a decline from adjusted earnings of $1.85 recorded in 2023.
For the third quarter of 2024, the company expects revenues between $430 million and $465 million, which suggests a decline of 14% to 7% from the year-ago quarter’s reported level. NUS expects adjusted earnings in the band of 15-25 cents a share in the third quarter compared with 56 cents recorded in the same period last year.
Estimates for Nu Skin Lose Sheen
The Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 60 days, analysts have lowered their estimates for the current and next fiscal year by 29.1% and 26.6% to 78 cents per share and $1.05, respectively. This downward adjustment reflects a negative sentiment among analysts and suggests potential challenges in achieving projected profitability.
What’s Next for NUS Investors?
Nu Skin is currently navigating a challenging period, with its stock performance mirroring the macroeconomic and industry-specific hurdles it faces. Although the company is making efforts to revitalize its market position through strategic initiatives, including new product launches and leveraging its Rhyz business, these measures may require time to deliver meaningful results. Investors should approach the stock with caution, monitoring whether Nu Skin’s strategies can counterbalance the current pressures. At present, Nu Skin holds a Zacks Rank #5 (Strong Sell).
3 Staple Stocks Worth Betting On
The Chef’s Warehouse (CHEF - Free Report) , which engages in the distribution of specialty food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal-year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods (FLO - Free Report) , a packaged bakery food company, currently carries a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick (MKC - Free Report) is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.1% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.