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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 $35.21, marking a -0.54% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.

Prior to today's trading, shares of the weight-loss program operator had gained 3% over the past month. This has outpaced the Consumer Discretionary sector's loss of 5.09% and the S&P 500's loss of 1.87% in that time.

Wall Street will be looking for positivity from WW as it approaches its next earnings report date. In that report, analysts expect WW to post earnings of $0.66 per share. This would mark a year-over-year decline of 34%. Meanwhile, our latest consensus estimate is calling for revenue of $353.93 million, down 3.24% from the prior-year quarter.

WW's full-year Zacks Consensus Estimates are calling for earnings of $1.70 per share and revenue of $1.42 billion. These results would represent year-over-year changes of -46.71% and -6.41%, respectively.

Investors should also note any recent changes to analyst estimates for WW. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. WW is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note WW's current valuation metrics, including its Forward P/E ratio of 20.86. This valuation marks a premium compared to its industry's average Forward P/E of 14.2.

Investors should also note that WW has a PEG ratio of 1.39 right now. 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 was holding an average PEG ratio of 1.39 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 30, putting it in the top 12% 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.

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


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