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Weight Watchers International (WW) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Weight Watchers International (WW - Free Report) closed at $22.08, marking a -0.36% move from the previous day. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 1.11%.

Coming into today, shares of the weight-loss program operator had gained 16.02% in the past month. In that same time, the Consumer Discretionary sector gained 2.47%, while the S&P 500 gained 3.18%.

Investors will be hoping for strength from WW as it approaches its next earnings release, which is expected to be August 6, 2019. The company is expected to report EPS of $0.65, down 35.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $375.06 million, down 8.45% from the year-ago period.

WW's full-year Zacks Consensus Estimates are calling for earnings of $1.53 per share and revenue of $1.40 billion. These results would represent year-over-year changes of -52.04% and -7.4%, respectively.

Any recent changes to analyst estimates for WW 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. WW is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, WW is holding a Forward P/E ratio of 14.5. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.5.

We can also see that WW currently has a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Consumer Services - Miscellaneous industry currently had an average PEG ratio of 1.32 as of yesterday's close.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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