With such a great start to the holiday week, we could not help but gloat a little about the stocks I have mentioned related to the diet drugs, or what I call the “vanity” trade.
Stock tickers IPAR (perfumes), ELF (cosmetics) ULTA (beauty store) HIMS (online products for men and women) all posted huge gains today along with the Retail sector ETF (XRT).
If the trend continues, there are still stocks that could perform very well going forward.
Nike (NKE) is one (it posted gains today), and the other is Nu-Skin (NUS).
Nu Skin is an American multi-level marketing company for personal care products and dietary supplements.
Nu Skin survived a scandal in 2016 and paid a $47 million class-action settlement, citing failure to disclose that its Chinese subsidiary did not register properly as the direct seller.
Nu Skin paid $750k in fines to the United States Securities and Exchange Commission following allegations of a bribe that saw charity funds go to a Chinese politician.
However, as an American company, it is possible, under a new administration, they could compete if tariffs are employed.
Since 2022, Nu Skin has launched new products popularized by Venus Williams. These products (RenuSpa iO) are related to the company’s first integrated beauty and wellness device.
Nu Skin stock (NUS) has an ex-dividend date that is one business day before the record date, which is on November 29th. This means that investors can purchase the company’s shares before this date to be eligible for the dividend, which will be paid on December 11th.
Third quarter earnings results were good.
Nu Skin Enterprises’ revenue missed analyst estimates by 2.5%, but EPS exceeded analyst estimates by 17%.
Looking at the charts:
The NUS stock chart I posted above is a on a “weekly” timeframe.
As you can see, there are the usual 50 and 200 weekly moving averages I always refer to.
Today, while I use this exponential moving average personally, I have never published it in a Daily until now.
The black dotted line intrigues me most.
Note that since early 2023, the price on a weekly basis has not cleared the EMA.
Also note that in January 2023, the EMA lined up with the 50-weekly moving average and 200-weekly moving averages.
Now, they are far apart.
Hence, a short week yes, but should NUS clear the EMA, the breakout is compelling and the risk nominal.
Remember, the technicals often precede the fundamentals. And this company fits into the “vanity” megatrend.
Stock Market ETFs Trading Analysis & Summary:
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY): 575 is price support; 600 is price resistance
Russell 2000 (IWM): New intra-day all time high!
Dow Jones (DIA): 445 is pivotal
Nasdaq 100 (QQQ): 500 is pivotal
Regional banks (KRE): 65 is price support; 70 is price resistance
Semiconductors (SMH): 235 is the 200-day moving average to hold; 250 is price resistance
Transportation (IYT): Making new all-time high
Biotechnology (IBB): 138 is price support.
Retail (XRT): Over 84 is bullish. 80 is price support.
High Yield Bond ETF (HYG): 79.50 is pivotal price support
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
