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Weight Watchers International (WTW) Stock Moves -0.02%: What You Should Know

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Weight Watchers International (WTW - Free Report) closed the most recent trading day at $63.01, moving -0.02% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 2.13%, and the Nasdaq, a tech-heavy index, lost 1.25%.

Heading into today, shares of the weight-loss program operator had lost 13.52% over the past month, lagging the Consumer Discretionary sector's loss of 4.7% and the S&P 500's loss of 3.01% in that time.

Investors will be hoping for strength from WTW as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $379.67 million, up 17.29% from the year-ago period.

WTW's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $1.56 billion. These results would represent year-over-year changes of +80.61% and +19.7%, respectively.

It is also important to note the recent changes to analyst estimates for WTW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.26% higher 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 21.17 right now. For comparison, its industry has an average Forward P/E of 16.1, which means WTW is trading at a premium to the group.

We can also see that WTW currently has a PEG ratio of 0.94. 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. Consumer Services - Miscellaneous stocks are, on average, holding a PEG ratio of 1.29 based on yesterday's closing prices.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 28% 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.

To follow WTW in the coming trading sessions, be sure to utilize Zacks.com.


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