What’s Next For Nu Skin Stock After The Recent 12% Rise Last Week?

The stock price of Nu Skin (NYSE: NUS), best known for its Nu Skin personal care products and Pharmanex dietary supplements, has seen an 12% rise over the last five trading days, and we believe the stock will likely continue to trend higher in the near term. The recent rise can primarily be attributed to the company’s recently announced Q1 numbers, which were above the street estimates. Nu Skin’s Q1 revenue of $677 million was up 31% y-o-y, and it was higher than the $633 million consensus estimate. Similarly, its adjusted EPS of $0.91 was much higher than the $0.72 consensus estimate. The company also revised its guidance for revenue to be between $2.80 billion and $2.87 billion and EPS to be between $4.05 and $4.30 in 2021, compared to $2.76 billion revenues and $3.95 EPS at mid-point of the earlier provided outlook. NUS stock is also up a solid 33% year-to-date.

What has worked for the company over the recent past is its reliance on technology with investments focused on enhancing its digital platform. Even before the Covid-19 pandemic, the company was focused on e-commerce growth, and now roughly 90% of the company’s total revenue comes from online transactions. The company’s recently launched products – ageLOC Boost and Nutricentials Bioadaptives – garnered $35 million in Q1, and their contribution  is expected to increase over the coming quarters. ageLOC Boost is a device that sends charged-balanced, intermittent, restorative pulses to the skin, and when it is used with an activating treatment or activating serum, the device helps the skin to achieve a more glowing complexion, according to the company’s product description. Nutricentials Bioadaptives is an advanced line of skin care essentials, which is developed using clean ingredients and formulas. There has been a rapid growth in demand for cleaner products with minimal chemicals for skin, and Nu Skin is looking to gain share in this market. Overall, the company has taken steps in the right direction that will help its revenue and earnings grow in the long term, in our view, boding well for its stock.

Looking at the recent rise, the 12% growth for NUS stock over the last five days compares with just a 0.7% decline seen in the broader S&P 500 index. Now, is NUS stock poised to rise further or is a decline after the recent rally imminent? We believe the NUS stock will continue to rally in the near term. Given the momentum in NUS stock, a solid Q1 beat, and based on our machine learning analysis of trends in the stock price over the last few years, we believe that there is a 55% chance of a rise in NUS stock over the next month (twenty-one trading days).

Out of 91 instances in the last ten years that NUS stock saw a five-day rise of 12% or more, 50 of them resulted in NUS stock rising over the subsequent one month period (21 trading days). This historical pattern reflects 50 out of 91, or about a 55% chance of gain in NUS stock over the coming month. See our analysis on Nu Skin Stock Chances of Rise for more details.

Five Days: NUS 12%, vs. S&P500 -0.7%; Outperformed market

(4% likelihood event)

• Nu Skin Enterprises stock rose 12% over a five-day trading period ending 5/10/2021, compared to the broader market (S&P500) decline of 0.7%
• A change of 12% or more over five trading days is a 4% likelihood event, which has occurred 93 times out of 2516 in the last ten years

Ten Days: NUS 8.6%, vs. S&P500 -0.5%; Outperformed market

(14% likelihood event)

• Nu Skin Enterprises stock rose 8.6% over the last ten trading days (two weeks), compared to the broader market (S&P500) decline of 0.5%
• A change of 8.6% or more over ten trading days is a 14% likelihood event, which has occurred 339 times out of 2511 in the last ten years

Twenty-One Days: NUS 14%, vs. S&P500 0.9%; Outperformed market

(12% likelihood event)

• Nu Skin Enterprises stock rose 14% the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 0.9%
• A change of 14% or more over twenty-one trading days is a 12% likelihood event, which has occurred 291 times out of 2500 in the last ten years

While NUS stock will likely continue its rally, it is helpful to see how its peers stack up. View Herbalife Stock Comparison With Peers to see how HLF stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.

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