Back to top

Image: Bigstock

Weight Watchers International (WTW) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Weight Watchers International (WTW - Free Report) closed at $66.43, marking a +0.58% move from the previous day. This change outpaced the S&P 500's 0.04% loss on the day. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.48%.

Coming into today, shares of the weight-loss program operator had lost 6.76% in the past month. In that same time, the Consumer Discretionary sector lost 4.99%, while the S&P 500 lost 4.53%.

WTW will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2018. In that report, analysts expect WTW to post earnings of $0.99 per share. This would mark year-over-year growth of 52.31%. Meanwhile, our latest consensus estimate is calling for revenue of $379.67 million, up 17.29% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.98 per share and revenue of $1.56 billion, which would represent changes of +80.61% and +19.7%, respectively, from the prior year.

Any recent changes to analyst estimates for WTW should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. WTW is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that WTW has a Forward P/E ratio of 22.19 right now. This represents a premium compared to its industry's average Forward P/E of 16.06.

Meanwhile, WTW's PEG ratio is currently 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Services - Miscellaneous was holding an average PEG ratio of 1.29 at yesterday's closing price.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 93, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Willis Towers Watson Public Limited Company (WTW) - free report >>

Published in