Is WW International (WW) Stock Undervalued Right Now?

WW

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is WW International (WW - Free Report) . WW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 19.87. This compares to its industry's average Forward P/E of 20.29. WW's Forward P/E has been as high as 22.05 and as low as 5.58, with a median of 14.53, all within the past year.

Investors should also note that WW holds a PEG ratio of 1.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WW's PEG compares to its industry's average PEG of 1.73. WW's PEG has been as high as 1.47 and as low as 0.24, with a median of 1.10, all within the past year.

These are only a few of the key metrics included in WW International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WW looks like an impressive value stock at the moment.

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