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Is Weight Watchers International (WW) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Weight Watchers International (WW - Free Report) is a stock many investors are watching right now. WW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.23, while its industry has an average P/E of 15.89. Over the last 12 months, WW's Forward P/E has been as high as 30.96 and as low as 5.58, with a median of 14.05.

We also note that WW holds a PEG ratio of 0.98. 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. WW's industry has an average PEG of 1.31 right now. Over the last 12 months, WW's PEG has been as high as 1.77 and as low as 0.24, with a median of 0.88.

Finally, investors should note that WW has a P/CF ratio of 6.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. WW's current P/CF looks attractive when compared to its industry's average P/CF of 6.42. WW's P/CF has been as high as 25.15 and as low as 4.90, with a median of 9.30, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Weight Watchers International is likely undervalued currently. And when considering the strength of its earnings outlook, WW sticks out at as one of the market's strongest value stocks.


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