Nu Skin Enterprises Inc. NUS recently updated its outlook for third-quarter 2017, following which shares spiked around 2.4%.

Raised Q3 Guidance

Just ahead of the investor meeting, the beauty and wellness products' company raised its sales and earnings forecast for the upcoming quarter. The company is scheduled to report third-quarter results on Nov 1. The company expects third-quarter earnings in the range of 74-76 cents per share, up from a previously provided guidance range of 71-76 cents. The top line is anticipated to grow in the range of $559-$563 million, higher than $540-$560 million, expected earlier. We believe its efforts to innovate products to boost sales is doing the trick for the company. Also, the cosmetics industry is also doing well at the moment.

Upbeat Q2 Performance

We note that Provo, UT-based Nu Skin posted upbeat second-quarter 2017 results, wherein both earnings and sales surpassed the Zacks Consensus Estimate. Further, it raised its guidance for full-year earnings. In fact, the company’s earnings have surpassed estimates in three of the trailing five quarters.

Nu Skin’s revenues declined 2% due to foreign currency fluctuations. Revenues were adversely affected by dismal performance from Mainland China, South Asia/Pacific, Hong Kong/Taiwan, Japan and South Korea regions. Nevertheless, the Zacks Rank #3 (Hold) company, which develops and distributes anti-aging personal care products and nutritional supplements, remains focused on boosting customers and in turn sales. Nu Skin also plans to launch its ageLOC LumiSpa product in the fourth quarter, which is expected to generate roughly $100 million revenues.

For 2017, management continues to expect revenues of $2.26-$2.30 billion with an unfavorable currency impact of roughly 2-3%. Earnings per share are now projected in the band of $3.20-$3.30.

Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise

Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise | Nu Skin Enterprises, Inc. Quote

Share Price Performance

The performance of Nu Skin is well reflected in its share price movement. If we look into the year-to-date performance, we note that the stock has surged 34.5%. On the other hand, the Zacks Cosmetics industry grew just 6.9%. The broader Consumer Staples sector increased 10.8% in the said time frame.

How is Cosmetic Industry Placed?

We note that the Zacks Cosmetics industry is currently placed at top 29% out of the 265 Zacks Industries. The industry has also been performing well, owing to surging consumer confidence and economic recovery. Consumers have started spending on beauty and personal care products in addition to apparel and footwear as well as personal accessories. The rise of e-commerce and social media has also boosted fast-growing beauty channels.

Looking for More? Check these 3 Trending Consumer Staple Stocks

Investors interested in the same sector may consider some better-ranked stocks such as Estee Lauder Companies, Inc. EL, McCormick & Company, Inc. MKC and Lamb Weston Holdings Inc. LW.

Estee Lauder and McCormick, both sporting a Zacks Rank #1 (Strong Buy), have long-term growth rates of 12.0% and 9.4%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lamb Weston, with a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 6.3%.

4 Stocks to Watch after the Massive Equifax Hack

Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?

Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.

Get the new Investing Guide now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report
 
Estee Lauder Companies, Inc. (The) (EL) : Free Stock Analysis Report
 
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
 
Lamb Weston Holdings Inc. (LW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research