Why Nu Skin Shares Surged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of anti-aging products company Nu Skin Enterprises (NYSE: NUS  ) popped 13% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock has skyrocketed in 2013 on better-than-expected growth, and today's third-quarter results -- earnings more than doubled on a revenue spike of 76% -- coupled with upbeat guidance suggest that things aren't slowing. In fact, Nu Skin saw particularly strong sales for its newly launched ageLOC TR90 weight management system, giving investors plenty of good vibes over the stock's trajectory going forward.

Now what: Management now sees full-year EPS of $5.77 to $5.82 on revenue of $3.18 billion to $3.21 billion, well ahead of Wall Street's view of $5.17 and $2.95 billion. "Our sales force has built strong consumer demand for our ageLOC TR90 system, with a very positive initial response to our product release," said CEO Truman Hunt. "We continue to improve our execution as we strategically develop and launch innovative products, ensuring a vibrant business opportunity for our sales leaders." Of course, with Nu Skin shares now up a whopping 200% year to date and trading at a 20-plus price-to-cash flow multiple, much of that momentum might already be baked into the price. 

Here are 3 forever-stocks instead
Odds are you know one of them. They travel the globe for weeks at a time. They have the first tee time tomorrow morning, and a five-star reservation for dinner. But if you asked what these people did for a living, chances are you'd be surprised. You see, these aren't doctors, lawyers, or Wall Street tycoons.These are everyday Americans with everyday jobs, now living the life of their dreams. 

And many of them can point to a single investing edge that helped them get there. It only takes minutes to learn, but rewards its followers for a lifetime. Best of all, the details are clearly spelled out for you in The Motley Fool's special free report "3 Stocks to Own Forever." But don't let this title fool you. The most important information inside isn't a stock pick. Click here now for free access.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2693385, ~/Articles/ArticleHandler.aspx, 9/1/2014 3:36:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement