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WW International (WW) Outpaces Stock Market Gains: What You Should Know

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WW International (WW - Free Report) closed at $36.52 in the latest trading session, marking a +1.78% move from the prior day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the weight-loss program operator had lost 0.55% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.19% and the S&P 500's gain of 0.32% in that time.

Investors will be hoping for strength from WW as it approaches its next earnings release, which is expected to be November 5, 2019. In that report, analysts expect WW to post earnings of $0.67 per share. This would mark a year-over-year decline of 33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $353.93 million, down 3.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $1.42 billion. These totals would mark changes of -46.71% and -6.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for WW. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. WW currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, WW currently has a Forward P/E ratio of 21.07. This represents a premium compared to its industry's average Forward P/E of 17.57.

We can also see that WW currently has a PEG ratio of 1.4. 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 had an average PEG ratio of 1.42 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 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 WW in the coming trading sessions, be sure to utilize Zacks.com.


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