should i buy weight watchers stock

should i buy weight watchers stock

A sales/assets ratio of 2.50 means the company generated $2.50 in revenue for every $1.00 of assets on its books. Others will look for a pullback on the week as a good entry point, assuming the longer-term price changes (4 week, 12 weeks, etc.) It currently has a Growth Score of B. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. EBITDA, as the acronym depicts, is earnings before interest, taxes, depreciation and amortization. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. In this example, we are using the consensus earnings estimate for the Current Fiscal Year (F1). Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries. George Young • December 13, 2018 • Fox Business Countdown to the Closing Bell. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. They need a strong outlook from management to get this stock flying. Learn more about Zacks Equity Research reports. For one, part of trading is being able to get in and out of a stock easily. Current Cash Flow Growth measures the percent change in the year over year Cash Flow. WW International, Inc., formerly Weight Watchers International, Inc., is a global company headquartered in the U.S. that offers various products and services, including weight loss and maintenance, fitness, and mindset such as the Weight Watchers comprehensive diet program. He reminds investors to remain patient with the market and look to the long term. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. $24.44 The Price to Book ratio or P/B is calculated as market capitalization divided by its book value. Since cash can't be manipulated like earnings can, it's a preferred metric for analysts. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Is Weight Watchers International, Inc. (WTW) A Good Stock To Buy? As a point of reference, over the last 10 years, the median sales growth for the stocks in the S&P 500 was 14%. So it's a good idea to compare a stock's debt to equity ratio to its industry to see how it stacks up to its peers first. ROE values, like other values, can vary significantly from one industry to another. A P/B of 2 means it's selling at 2 times its book value. Weight Watchers Strategy Shift Makes Shares a Buy at Jefferies. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy srocks with the highest probability of success. The 1 Week Price Change displays the percentage price change over the last 5 trading days using the most recently completed close to the close from 5 days before. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. WW International's (WW) Ready-to-Drink Coffee to Fuel Sales, The Zacks Analyst Blog Highlights: Peloton, Planet Fitness, Facebook, Alphabet and Weight Watchers. InvestorPlace – Stock Market News, Stock Advice & Trading Tips. WTW stock was at $80 in early 2012. But if guidance is weak, investors will ignore that catalyst. Valuation metrics show that WW International, Inc. may be undervalued. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. WW International (WW) Expected to Beat Earnings Estimates: Should You Buy? A D/E ratio of 1 means its debt is equivalent to its common equity. It's packed with all of the company's key stats and salient decision making information. One of the reasons some investors prefer the P/S ratio over other metrics like the P/E ratio is because sales are harder to manipulate on an income statement than earnings. It's an integral part of the Zacks Rank and a critical part in effective stock evaluation. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. Nasdaq This is a medium-term price change metric (like the 4 week price change). Despite some of the seemingly positive developments at Weight Watchers, we have one true guide: price. The PEG ratio is the P/E ratio divided by its growth rate. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. George Young shares his insights on Weight Watchers with Liz Claman. 1125 N. Charles St, Baltimore, MD 21201. Source: Shutterstock WW’s earnings are expected to plunge in 2019, based on the […] The most common way this ratio is used is to compare it to other stocks and to compare it to the 10 Year T-Bill. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. Seeking Alpha Our testing substantiates this with the optimum range for price performance between 0-20. Weight Watchers International (WW Quick Quote WW - Free Report) is a stock many investors are watching right now. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. Will We Ever Feel Comfortable Going to the Gym Again. If you do not, click Cancel. Should you buy Weight Watchers’ stock? This is a medium-term price change metric. This measure is expressed as a percentage. Weight Watchers International saw its share price rocket 40% in a single day earlier this month after it revised its guidance for the year after achieving better-than-expected Q2 results. Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings). We use cookies to understand how you use our site and to improve your experience. ROE is always expressed as a percentage. And, of course, the 4 week change helps put the 1 week change into context. While earnings are the driving metric behind stock prices, there wouldn't be any earnings to calculate if there weren't any sales to begin with. But they all have their place in the Growth style. The 4 week price change is a good reference point for the individual stock and how it's performed in relation to its peers. The Growth Scorecard table also displays the values for its respective Industry along with the values and Growth Score of its three closest peers. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). It's typically categorized as a valuation metric and is most often quoted as Cash Flow per Share and as a Price to Cash flow ratio. With 12 weeks representing a meaningful part of a year, this time period will show whether a stock has been enjoying strong investor demand, or if it's in consolidation, or distress. Others look for those that have lagged the market, believing those are the ones ripe for the biggest increases to come. On the balance sheet front, WTW would be more attractive if the company didn’t carry $1.6 billion in long-term debt, although that is down more than 25% from fiscal year-end 2015. Visit www.zacksdata.com to get our data and content for your mobile app or website. The stock is priced for growth, but valuation is not excessive considering the company's performance. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. The Weight Watchers Stock Rollercoaster. Despite some of the seemingly positive developments at Weight Watchers, we have one true guide: price. WW International Inc., formerly known as Weight Watchers International Inc., is based in New York. It’s hard to be overly bearish on a stock that’s already down 60% over the past year. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. The Earnings Yield (also known as the E/P ratio) measures the anticipated yield (or return) an investment in a stock could give you based on the earnings and the price paid. In this case, it's the cash flow growth that's being looked at. This is also useful to know when comparing a stock's daily volume (which can be found on a ticker's hover-quote) to that of its average volume. This is also referred to as the cash yield. But, typically, an aggressive growth trader will be interested in the higher growth rates. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio. Trading in Weight Watchers stock over the past few years has been something close to incredible. In general, the lower the ratio is the better. Earnings estimate revisions are the most important factor influencing stocks prices. The change is made all the more important the closer proximity it is to the stock's earnings date since it is generally believed that the most recent estimates are the most accurate since it's using the most up-to-date information leading up to the report. This allows the investor to be as broad or as specific as they want to be when selecting stocks. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. If a company's expenses are growing faster than their sales, this will reduce their margins. By M. Corey Goldman. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. The Projected Sales Growth (F1/F0) looks at the estimated growth rate for the current year. The technique has proven to be very useful for finding positive surprises. So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. Growth traders and investors will tend to look for growth rates of 20% or higher. Again, it’s important that Weight Watchers is able to deliver a solid outlook, giving investors a reason to bid this name higher. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. Weight Watchers International (WW) is a stock many investors are watching right now. But note, different industries have different margin rates that are considered good. The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. There are 17 Sectors, 60 different M Industries, and 265 X Industries. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. Zacks Premium - The way to access to the Zacks Rank. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. Analysts are looking for 60 cents per share in Q4, down from the 63 cents per share they were looking for 90 days ago. The income number is listed on a company's Income Statement. Put simply, while Weight Watchers stock may not enjoy fiscal Q4 as much as many other companies — say like a Canada Goose (NYSE:GOOS) or Hasbro (NYSE:HAS) — it has six solid months of business coming. Growth Style - Learn more about the Growth Style. To learn more, click here. Copyright © Visit performance for information about the performance numbers displayed above. So, when comparing one stock to another in a different industry, it's best make relative comparisons to that stock's respective industry values. The company's products and services are comprised of nutritional, activity, behavioral and lifestyle tools and approaches. It is used to help gauge a company's financial health. Should You Buy Weight Watchers Stock Ahead of Earnings? Category Zacks Style Scores Education - Learn more about the Zacks Style Scores. A rank of 43 means that 57% of stocks appear more favorable to our system. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). One of the reasons why some investors prefer the P/CF ratio over the P/E ratio is because the net income of the cash flow portion rightly adds depreciation and amortization back in since these are not cash expenditures. Each of the company logos represented herein are trademarks of Verizon Media; Microsoft Corporation; Nasdaq, Inc.; Dow Jones & Company; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. If the volume is too light, in absolute terms or for a relatively large position, it could be difficult to execute a trade. Weight Watchers stock also has a 17% short interest. This shows the percentage of profit a company earns on its sales. It measures a company's ability to pay short-term obligations. The Weight Watchers International, Inc stock price fell by -6.69% on the last day (Monday, 28th Dec 2020) from $28.24 to $26.35.During the day the stock fluctuated 9.44% from a day low at $26.27 to a day high of … ET by Tomi Kilgore Oprah’s tour drove Weight Watchers … Delayed quotes by Sungard. WW, formerly Weight Watchers, stock price target cut to $28 from $46 at B. Riley FBR Mar. If a stock's EPS consensus estimate is $1.10 now vs. $1.00 the week before, that will be reflected as a 10% change. On corrections down, there will be some support from the lines at $27.45 and $28.06. That does not mean that all companies with large growth rates will have a favorable Growth Score. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. Zacks Ranks stocks can, and often do, change throughout the month. This item is updated at 9 pm EST each day. When she made the announcement, Weight Watchers stock was trading below 7, down an amazing 92% from its 2011 high. This is also commonly referred to as the Asset Utilization ratio. A 'good' number would usually fall within the range of 1.5 to 3. In Q1 2020, health and wellness company WW International 's () (formerly Weight Watchers) revenue grew by 10% year over year to $400 million. The Price to Earnings ratio or P/E is price divided by earnings. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. It's calculated as earnings divided by price. The financial health and growth prospects of WW, demonstrate its potential to outperform the market. Seeing how a company makes use of its equity, and the return generated on it, is an important measure to look at. The Growth Scorecard evaluates sales and earnings growth along with other important growth measures. Signals & Forecast. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. However, shares are oversold and momentum is seemingly bottoming out, as indicated by the blue circles on the RSI and MACD measurements. A P/B of 0.5 means its selling at half its book value. Many other growth items are considered as well. This is useful for obvious reasons, but can also put the current day's intraday gains into better context by knowing if the recently completed trading day was up or down. The analyzed items go beyond simple trend analysis. ZacksTrade and Zacks.com are separate companies. Revenue is set to grow more than 17% in fiscal 2018 and analysts see even more growth ahead. It would seem like Weight Watchers (NASDAQ:WTW) stock is cheap. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. A P/B of 1 means it's selling at its per share book value. It is now below the 200-week moving average as well. The median P/B ratio for stocks in the S&P is just over 3. By Tony Owusu. See rankings and related performance below. Debt to Capital (or D/C ratio) is the fraction of debt (including mortgages and long-term leases) to long-term capitalization. A higher number means the more debt a company has compared to its capital structure. All of those stocks are classified into three groups: Sector, M Industry and X Industry. In general, a lower number or multiple is usually considered better that a higher one. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. WW International Inc. provides weight management services. WTW | Complete WW International Inc. stock news by MarketWatch. Value Style - Learn more about the Value Style. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. Real time prices by BATS. Buy Weight Watchers Stock Weight Watcher’s stockholders have recently seen a nice return on their investment – the company reported fourth quarter earnings of $.20 per share. Above 1 means it assets are greater than its liabilities.

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