Why Nu Skin Shares Popped

Why Nu Skin Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Nu Skin Enterprises were looking refreshed today, gaining as much as 14% today after the company lifted its guidance significantly for the current quarter and full year.

So what: The skin-care and nutritional products maker raised its outlook for the quarter all the way from $0.91-$0.95 a share to $1.20, and said it now expects revenue of about $680 million, or $100 million more than its previous projection. EPS projections for the full year also jumped to $4.85-$5.00 from $4.18-$4.30. CEO Truman Hunt credited "the strong momentum of our business" and particularly last year's ageLOC product launches for the gains.

Now what: Shares of Nu Skin had gotten hammered late last year when fund manager Bill Ackman slammed rival Herbalife, a fellow multilevel marketing company, calling it a "pyramid scheme." However, Nu Skin's recent strong results and last night's update seem to indicate that this company is for real, despite whatever criticisms hedge fund managers may throw out to manipulate market. Nu Skin will report second-quarter earnings on Aug. 1.

While you can certainly make huge gains in health care stocks like Nu Skin, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

To stay connected with Nu Skin Enterprises, just add the company to your watchlist here.

The article Why Nu Skin Shares Popped originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.