What a time it’s been for Nature's Sunshine. In the past six months alone, the company’s stock price has increased by a massive 63.7%, setting a new 52-week high of $27.62 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Is now the time to buy Nature's Sunshine, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Is Nature's Sunshine Not Exciting?
We’re glad investors have benefited from the price increase, but we're sitting this one out for now. Here are three reasons you should be careful with NATR and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Nature's Sunshine grew its sales at a sluggish 2.8% compounded annual growth rate. This was below our standards.
2. Fewer Distribution Channels Limit its Ceiling
With $474.5 million in revenue over the past 12 months, Nature's Sunshine is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
3. Projected Revenue Growth Is Slim
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Nature's Sunshine’s revenue to rise by 3.1%. This projection is underwhelming and implies its newer products will not catalyze better top-line performance yet.
Final Judgment
Nature's Sunshine isn’t a terrible business, but it doesn’t pass our bar. After the recent rally, the stock trades at 29.8× forward P/E (or $27.62 per share). This valuation tells us a lot of optimism is priced in - you can find more timely opportunities elsewhere. We’d suggest looking at one of our top digital advertising picks.
Stocks We Would Buy Instead of Nature's Sunshine
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
