Analysts’ Top Consumer Goods Picks: IIVI, NUS

By Carrie Williams

There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on II-VI Inc (NASDAQ: IIVI) and Nu Skin (NYSE: NUS) with bullish sentiments.

II-VI Inc (NASDAQ: IIVI)

Benchmark Co. analyst Mark Miller reiterated a Buy rating on II-VI Inc (NASDAQ: IIVI) on June 21 and set a price target of $40. The company’s shares closed last Friday at $35.30.

According to TipRanks.com, Miller is a top 25 analyst with an average return of 33.8% and a 84.3% success rate. Miller covers the Consumer Goods sector, focusing on stocks such as Hutchinson Technology Inc, Axcelis Technologies, and Electro Scientific.

Currently, the analyst consensus on II-VI Inc is Moderate Buy and the average price target is $40, representing a 13.3% upside.

In a report issued on June 21, Needham also reiterated a Buy rating on the stock with a $40 price target.
Nu Skin (NYSE: NUS)

In a report issued on June 22, Timothy Ramey from Pivotal Research reiterated a Buy rating on Nu Skin (NYSE: NUS), with a price target of $80. The company’s shares closed last Friday at $63.82, close to its 52-week high of $66.04.

Ramey said:

“We believe NUS will be aggressive on share repurchases this year and are setting up for a strong finish to the year and credible growth in 2018. F/X, at present, appears to be neutral to positive starting in 4Q17. More details discussed herein… VALUATION: We’ve made no changes to our estimates at this time, but expect that as the year rolls forward our revisions will be to the upside. And the 4Q17 will be a big quarter for NUS in our opinion. Our price target moves to $80 per share or 22x 2018 EPS. The shares rose 26% in 2016 and 26.6% YTD. The return to meaningful sales growth will be the driver of multiple expansion, we believe. Organic sales growth of 5.3% to 7.2% is impressive. Free cash flow yield is 6.3%. It trades at 18.6x 2017 EPS and 9.8x EV/EBITDA. Given its organic growth, its fine balance sheet and strong cash generation, NUS is cheap by all normal measures of value in our view. RISKS: The strong dollar has been the biggest risk to estimates. In 2016 top-line was trimmed 2% from the strong dollar. The company sees 3% pressure from F/X for 2017. As an MLM, NUS has regulatory risk as well, though we believe the NUS business model to be ethical and legal around the world.”

According to TipRanks.com, Ramey is a 4-star analyst with an average return of 8.3% and a 67.5% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Omega Protein Corp, and Post Holdings Inc.

Nu Skin has an analyst consensus of Hold, with a price target consensus of $61.50.

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