Shares of Nu Skin Enterprises, Inc. (NYSE:NUS)are poised to trade higher over the next few quarters as the company rolls out a new product offering that should drive sales significantly higher.
With a well established global sales network, and a strong reputation for quality products, Nu Skin’s highly-anticipated release of its new weight loss management system should act as a catalyst for a dramatic increase in the stock price.
Investors should do their homework now, and add Nu Skin to their portfolio before the data starts coming in from this new product launch. By that time, the stock price will likely already be much higher, and investors who delay will miss out on potential profits.
Mastering a specific niche
Nu Skin Enterprises, Inc. (NYSE:NUS) is a health and beauty company that focuses on anti-aging products. The company generates roughly half of its revenues from from its line of personal care products, and half from its nutrition segment.
Nu Skin sells its products through a direct marketing strategy. The company recruits independent sales representatives to peddle its products – thus allowing them to operate with lower overhead costs , and penetrate markets that might be otherwise unavailable.
While the company focuses on a relatively narrow product line, Nu Skin Enterprises, Inc. (NYSE:NUS)’s geographic footprint is anything but narrow. Over the past 28 years, Nu Skin has been expanding its sales force to over 50 countries. Recently, the company has been experiencing strong growth in emerging markets, with Chinese operations reporting a 90% year-over-year increase last quarter.
The business model is a great example of a company that has developed a strong reputation in one area (anti-aging products), and aggressively expanded within its particular niche.
Nu Skin Enterprises, Inc. (NYSE:NUS) has grown to a very respectable market capitalization of $3.55 billion, with 2012 revenue of $2.17 billion. But despite its size, Nu Skin still has room to continue to grow. Analysts expect the company to earn $4.29 per share this year, which represents a 22% increase over 2012 earnings.
More importantly, these analysts have been increasing their expectations over recent weeks, as more information on the new product surfaces.
Over the past 28 years, the company has perfected the art of launching new products. When new products are introduced to the company’s customer base, there is a drawn out process that takes place. This process includes extensive testing, education of the customer base in advance of the product being available, and of course a strong effort put into educating the company’s sales force.
Given the company’s skill at introducing new products, the loyalty of Nu Skin Enterprises, Inc. (NYSE:NUS)’s customer base, and the strong consumer demand for a healthy weight loss system, Nu Skin’s upcoming launch could turn out to be a major catalyst for investors.
Strong demand for health and beauty
Demand for health and beauty products continues to grow as the global population ages.
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) announced earnings this week, beating expectations and trading sharply higher. The company currently manages 576 stores in the US and will add another 125 stores this year due to increasing demand.
Same store sales for the company grew 6.7% last quarter with online sales increasing by 70%. Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) doesn’t represent quite the same compelling opportunity that I see in Nu Skin right now – primarily because analysts are keeping their estimates steady (expectations are not expanding), and the stock is trading at more than 23 times forward earnings.
But the company’s strong performance, and premium stock valuation is a good example of tremendous consumer demand for health and beauty products.
Direct marketing done right
As noted Nu Skin Enterprises, Inc. (NYSE:NUS) sells its products through a direct marketing strategy. So how is it doing compared with other companies in that field?
Earlier this week, I mentioned the direct marketing platform operated by Herbalife Ltd. (NYSE:HLF). Herbalife has been accused of operating a multi-level marketing scheme where it is unclear whether the company is profiting from selling its actual products, or simply by collecting dues from new sales associates.
While Herbalife Ltd. (NYSE:HLF) continues to grow earnings aggressively, and is trading at an attractive multiple, the company’s regulatory risk is a point of concern for some investors.
But Nu Skin operates its direct marketing platform much differently. Notably, 85% of customers who purchase products from Nu Skin never actually join the sales network. This is an important point, because it proves that the company is actually conducting legitimate business with it’s widespread sales approach.
This sales approach is what has allowed the company to effectively branch out into new countries, and also what allows them to quickly get new products to their wide base of customers.
Growth at a (very) reasonable price
As mentioned, analysts currently expect the Nu Skin Enterprises, Inc. (NYSE:NUS) to earn $4.29 per share this year. In 2014, analysts expect the company to continue to grow earnings to $4.89 per share. And these estimates are being revised higher as analysts incorporate revenue from the new product into their models.
Nu Skin is currently trading at just over 14 times expected earnings for 2012.
Over the next year, I expect investors to be willing to pay at least 20 times earnings for this growth company. This is reasonable given the strong growth in earnings and revenue, along with increasing investor sentiment as Nu Skin effectively brings this new product to market.
At 20 times earnings, shares of Nu Skin would hit $97.80, well over a 50% increase from today’s prices.
This increase could happen gradually, as quarterly sales figures trickle in, or it could happen suddenly (possibly after the company issues a press release offering sales figures for the new product).
The key here is to own the stock well in advance of the actual product launch (scheduled for the second half of 2013), in order to capture maximum profits!
Zachary Scheidt has no position in any stocks mentioned. The Motley Fool recommends Ulta Salon, Cosmetics & Fragrance. The Motley Fool owns shares of Ulta Salon, Cosmetics & Fragrance and has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd. (NYSE:HLF). Zachary is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!
It’s the revolution reshaping every industry on the planet.
From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.
Here’s why this is the prime moment to jump on the AI bandwagon:
Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.
Imagine every sector, from healthcare to finance, infused with superhuman intelligence.
We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.
This isn’t a maybe – it’s an inevitability.
Early investors will be the ones positioned to ride the wave of this technological tsunami.
Ground Floor Opportunity: Remember the early days of the internet?
Those who saw the potential of tech giants back then are sitting pretty today.
AI is at a similar inflection point.
We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.
This is your chance to get in before the rockets take off!
Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.
AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.
The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.
As an investor, you want to be on the side of the winners, and AI is the winning ticket.
The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.
From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.
This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.
By investing in AI, you’re essentially backing the future.
The future is powered by artificial intelligence, and the time to invest is NOW.
Don’t be a spectator in this technological revolution.
Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.
This isn’t just about making money – it’s about being part of the future.
So, buckle up and get ready for the ride of your investment life!
Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)
The AI revolution is upon us, and savvy investors stand to make a fortune.
But with so many choices, how do you find the hidden gem – the company poised for explosive growth?
That’s where our expertise comes in.
We’ve got the answer, but there’s a twist…
Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.
That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!
Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.
This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.
It’s like having a race car on a go-kart track.
They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.
Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.
We want to make sure none of our valued readers miss out on this groundbreaking opportunity!
That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.
For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!
I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…
Should I put my money in Artificial Intelligence?
Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.
Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…
But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.
That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…
And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.
