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Are Investors Undervaluing WW International (WW) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

WW International (WW - Free Report) is a stock many investors are watching right now. WW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 17.81, which compares to its industry's average of 20.04. WW's Forward P/E has been as high as 22.05 and as low as 5.58, with a median of 15.45, all within the past year.

Investors should also note that WW holds a PEG ratio of 1.19. 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 PEG compares to its industry's average PEG of 1.71. Over the last 12 months, WW's PEG has been as high as 1.47 and as low as 0.24, with a median of 1.13.

These figures are just a handful of the metrics value investors tend to look at, but they help show that WW International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WW feels like a great value stock at the moment.


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