Nu Skin Enterprises NUS shares soared 6.9% in the last trading session to close at $5.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.7% loss over the past four weeks.
Nu Skin’s recent rally appears driven by optimism surrounding improving sales leader engagement, strengthening brand affiliate confidence, expansion across emerging markets and disciplined operational execution. Continued focus on margin improvement, cost controls and strategic investments is reinforcing confidence in its long-term growth prospects.
This seller of skin care and nutritional products through a direct-selling model is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -53.5%. Revenues are expected to be $345.2 million, down 10.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Nu Skin, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NUS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nu Skin belongs to the Zacks Cosmetics industry. Another stock from the same industry, Coty COTY, closed the last trading session 2.1% higher at $1.92. Over the past month, COTY has returned -15.7%.
For Coty, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of +80% from what the company reported a year ago. Coty currently has a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).