Dj Vp Yates Sells 9672 Of Natures Sunshine Products Inc >Natr

Nature's Sunshine has had an impressive run over the past six months as its shares have beaten the S&P 500 by 8.4%. The stock now trades at $17.22, marking a 20% gain. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Is there a buying opportunity in Nature's Sunshine, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, 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 why NATR doesn't excite us and a stock we'd rather own.

1. Long-Term Revenue Growth Flatter Than a Pancake

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Nature's Sunshine struggled to consistently increase demand as its $460.8 million of sales for the trailing 12 months was close to its revenue three years ago. This was below our standards and signals it’s a lower quality business.

2. Fewer Distribution Channels Limit its Ceiling

With $460.8 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 1.3%, close to This projection is underwhelming and indicates 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. With its shares beating the market recently, the stock trades at 21.6× forward P/E (or $17.22 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're pretty confident there are more exciting stocks to buy at the moment. We’d recommend looking at the most dominant software business in the world.

High-Quality Stocks for All Market Conditions

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return).

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Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. The flip side is that they frequently fall behind growth industries when times are good, and this was the reality over the past six months as the sector’s flat performance trailed the S&P 500’s 10.5% gain.

Given the low switching costs of basic goods like paper towels, many companies will continue generating poor results while only a handful will shine. Taking that into account, here are three consumer stocks that may face trouble.

J. M. Smucker (SJM)

Market Cap: $11.79 billion

Best known for its fruit jams and spreads, J.M Smucker is a packaged foods company whose products span from peanut butter and coffee to pet food.

Why Do We Steer Clear of SJM?

• Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
• Efficiency has decreased over the last year as its operating margin fell by 27.1 percentage points
• ROIC of 2.2% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up

J. M. Smucker is trading at $110.74 per share, or 11.7x forward P/E. To fully understand why you should be careful with SJM, check out our full research report (it’s free).

Nature's Sunshine (NATR)

Market Cap: $297.2 million

Started on a kitchen table in Utah, Nature’s Sunshine manufactures and sells nutritional and personal care products.

Why Does NATR Worry Us?

• Sales stagnated over the last three years and signal the need for new growth strategies
• Modest revenue base of $460.8 million gives it less fixed cost leverage and fewer distribution channels than larger companies
• Estimated sales growth of 1.3% for the next 12 months is soft and implies weaker demand

Nature's Sunshine’s stock price of $16.52 implies a valuation ratio of 21.1x forward P/E. Read our free research report to see why you should think twice about including NATR in your portfolio.

Fresh Del Monte Produce (FDP)

Market Cap: $1.74 billion

Translating to "of the mountain" in Spanish, Fresh Del Monte is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Why Do We Think FDP Will Underperform?

• Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
• Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.3%
• Underwhelming 5.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $36.28 per share, Fresh Del Monte Produce trades at 16x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).

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While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here are three cash-producing companies to avoid and some better opportunities instead.

Nature's Sunshine (NATR)

Trailing 12-Month Free Cash Flow Margin: 4.9%

Started on a kitchen table in Utah, Nature’s Sunshine manufactures and sells nutritional and personal care products.

Why Are We Cautious About NATR?

• Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
• Smaller revenue base of $460.8 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
• Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.3%

At $16.40 per share, Nature's Sunshine trades at 20.6x forward P/E. Read our free research report to see why you should think twice about including NATR in your portfolio.

Kadant (KAI)

Trailing 12-Month Free Cash Flow Margin: 14.7%

Headquartered in Massachusetts, Kadant is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.

Why Does KAI Fall Short?

• Sales trends were unexciting over the last two years as its 4.9% annual growth was below the typical industrials company
• Estimated sales growth of 3.1% for the next 12 months implies demand will slow from its two-year trend
• Earnings per share were flat over the last two years and fell short of the peer group average

Kadant’s stock price of $340.90 implies a valuation ratio of 36.3x forward P/E. To fully understand why you should be careful with KAI, check out our full research report (it’s free).

Richardson Electronics (RELL)

Trailing 12-Month Free Cash Flow Margin: 3.7%

Founded in 1947, Richardson Electronics is a distributor of power grid and microwave tubes as well as consumables related to those products.

Why Should You Dump RELL?

• Customers postponed purchases of its products and services this cycle as its revenue declined by 10.8% annually over the last two years
• Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
• Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Richardson Electronics is trading at $10.03 per share, or 250.5x forward P/E. Dive into our free research report to see why there are better opportunities than RELL.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.

Nature's Sunshine (NATR)

Market Cap: $291.7 million

Started on a kitchen table in Utah, Nature’s Sunshine manufactures and sells nutritional and personal care products.

Why Are We Cautious About NATR?

• Sales stagnated over the last three years and signal the need for new growth strategies
• Subscale operations are evident in its revenue base of $460.8 million, meaning it has fewer distribution channels than its larger rivals
• Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.3%

At $16.54 per share, Nature's Sunshine trades at 20.9x forward P/E. Read our free research report to see why you should think twice about including NATR in your portfolio.

REV Group (REVG)

Market Cap: $2.55 billion

Offering the first full-electric North American fire truck, REV manufactures and sells specialty vehicles.

Why Is REVG Not Exciting?

• Flat sales over the last five years suggest it must find different ways to grow during this cycle
• Gross margin of 12% is below its competitors, leaving less money to invest in areas like marketing and R&D
• Poor expense management has led to an operating margin of 3% that is below the industry average

REV Group is trading at $52.31 per share, or 18.7x forward P/E. Dive into our free research report to see why there are better opportunities than REVG.

GoodRx (GDRX)

Market Cap: $1.30 billion

Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.

Why Do We Avoid GDRX?

• Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
• Smaller revenue base of $799.9 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
• Push for growth has led to negative returns on capital, signaling value destruction

GoodRx’s stock price of $3.75 implies a valuation ratio of 8.9x forward P/E. If you’re considering GDRX for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.