So what. 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. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. Earnings estimate revisions are the most important factor influencing stocks prices. The Zacks database contains over 10,000 stocks. Current Cash Flow Growth measures the percent change in the year over year Cash Flow. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Enterprise Value (EV) is Market Capitalization + Debt - Cash. Weight Watchers International In is in the bottom half of stocks based on the fundamental outlook for the stock and an analysis of the stock's chart. The stock is priced for growth, but valuation is not excessive considering the company's performance. Analysts are looking for 60 cents per share in Q4, down from the 63 cents per share they were looking for 90 days ago. Cash Flow is net income plus depreciation and other non-cash charges. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service. This shows the percentage of profit a company earns on its sales. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. NYSE and AMEX data is at least 20 minutes delayed. Why would anyone want to enter this name ahead of earnings, scheduled for tomorrow, February 26, after the close? It is used to help gauge a company's financial health. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank, Industry: Leisure and Recreation Services. The Weight Watchers International Inc. stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. The tested combination of price performance, and earnings momentum (both actual and estimate revisions), creates a powerful timeliness indicator to help you identify stocks on the move so you know when to get in and when to get out. Zacks Ranks stocks can, and often do, change throughout the month. A sector 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. 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. 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. quotes delayed at least 15 minutes, all others at least 20 minutes. The 4 week price change is a good reference point for the individual stock and how it's performed in relation to its peers. It's packed with all of the company's key stats and salient decision making information. This includes personalizing content and advertising. Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. 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. The PEG ratio is the P/E ratio divided by its growth rate. Weight Watchers Stock Sheds on Analyst Downgrade. The Price to Book ratio or P/B is calculated as market capitalization divided by its book value. Is Weight Watchers International, Inc. (WTW) A Good Stock To Buy? Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. Despite some of the seemingly positive developments at Weight Watchers, we have one true guide: price. 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. Nasdaq Weight Watchers shares sank as the company's earnings underwhelmed. As a result, the stock was up 9.9% as of 11:38 a.m. EDT. 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. The Sales to Assets ratio (or Sales to Total Assets or S/TA for short) shows how much sales are generated from a company's assets. 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. Conventional wisdom says that a PEG ratio of 1 or less is considered good (at par or undervalued to its growth rate). Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. ZacksTrade and Zacks.com are separate companies. The Villere Balanced Fund co-manager George Young discusses investment opportunities in today’s market. The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. 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. The 52 week price change is a good reference point. A sales/assets ratio of 2.50 means the company generated $2.50 in revenue for every $1.00 of assets on its books. The advice algorithm takes into account all of Weight Watchers' available fundamental , technical, and predictive indicators you will find on this site. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. Weight Watchers' stock is on pace for its best day since Oct. 19, 2015, when they skyrocketed 105% after Oprah Winfrey announced she was … A high-level overview of WW International, Inc. (WW) stock. On corrections down, there will be some support from the lines at $27.45 and $28.06. Two trading sessions after WW (the company formerly known as Weight Watchers) (NASDAQ: WTW) shares fell on a downbeat analyst note, shares of the wellness company were rising today after another analyst rang in with an endorsement. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. In this example, the one with the P/E of 40 is the better bargain because it is selling at a discount to its growth rate. Weight Watchers International, Inc. (WTW) shares fell more than 12% during Thursday's session after JPMorgan lowered its price target from $14.00 to $12.00 per share – … Above 1 means it assets are greater than its liabilities. Again, it’s important that Weight Watchers is able to deliver a solid outlook, giving investors a reason to bid this name higher. Zacks' proprietary data indicates that WW International, Inc. is currently rated as a Zacks Rank 3 and we are looking for an inline return from the WW shares relative to the market in the next few months. So be sure to compare it to its group when comparing stocks in different industries. Learn more about Zacks Equity Research reports. The 4 Week Price Change displays the percentage price change for the most recently completed 4 weeks (20 trading days). But, it's made even more meaningful when looking at the longer-term 4 week percent change. Interestingly enough though, management raised its full-year outlook in the quarter, so it’s surprising that investors didn’t cut WTW a little slack. For one, part of trading is being able to get in and out of a stock easily. Delayed quotes by Sungard. These returns cover a period from January 1, 1988 through October 5, 2020. Article printed from InvestorPlace Media, https://investorplace.com/2019/02/weight-watchers-wtw-stock-earnings-preview/. The 1 week price change reflects the collective buying and selling sentiment over the short-term. This is also commonly referred to as the Asset Utilization ratio. Growth traders and investors will tend to look for growth rates of 20% or higher. WW International (WW) Expected to Beat Earnings Estimates: Should You Buy? And margin rates can vary significantly across these different groups. A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. 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 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. 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. Its Value Score of A indicates it would be a good pick for value investors. Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. This allows the investor to be as broad or as specific as they want to be when selecting stocks. There are 17 Sectors, 60 different M Industries, and 265 X Industries. A ratio of 1 means a company's assets are equal to its liabilities. WW, formerly Weight Watchers, stock price target cut to $28 from $46 at B. Riley FBR Mar. 1125 N. Charles St, Baltimore, MD 21201. And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast. Zacks Premium - The way to access to the Zacks Rank. For example, a company with a P/E ratio of 25 and a growth rate of 20% would have a PEG ratio of 1.25 (25 / 20 = 1.25). This includes measuring aspects of the Income Statement, Statement of Cash Flows, the Balance Sheet, and more. #Exclusive for You #1 Shop for Low Price Should You Buy Weight Watchers Stock And What Index To Buy Stock In Etrade . The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. WTW stock was at $80 in early 2012. Zacks Rank Education -- Learn more about the Zacks Rank WW International Inc. provides weight management services. Others look for those that have lagged the market, believing those are the ones ripe for the biggest increases to come. Weight Watchers stock also has a 17% short interest. Real time prices by BATS. As they say, 'price follows volume'. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. 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. The median P/B ratio for stocks in the S&P is just over 3. 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. An amazing first quarter. Conversely, if the yield on stocks is higher than the 10 Yr., then stocks would be considered undervalued. When the calendar flips to a new year, people turn to making resolutions. That does not mean that all companies with large growth rates will have a favorable Growth Score. Momentum Style - Learn more about the Momentum Style. A value greater than 1, in general, is not as good (overvalued to its growth rate). The company's products and services are comprised of nutritional, activity, behavioral and lifestyle tools and approaches. The Villere Balanced Fund co-manager George Young discusses investment opportunities in today’s market. Projected EPS Growth looks at the estimated growth rate for one year. When she made the announcement, Weight Watchers stock was trading below 7, down an amazing 92% from its 2011 high. All rights reserved. WW International's (WW) Ready-to-Drink Coffee to Fuel Sales, The Zacks Analyst Blog Highlights: Peloton, Planet Fitness, Facebook, Alphabet and Weight Watchers. But note, different industries have different margin rates that are considered good. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank. So be sure to compare a stock to its industry's growth rate when sizing up stocks from different groups. All of those stocks are classified into three groups: Sector, M Industry and X Industry. However, shares … Remember, this is a ~$2 billion market cap company, so its balance sheet is somewhat less than ideal. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. 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. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Revenue is set to grow more than 17% in fiscal 2018 and analysts see even more growth ahead. If you wish to go to ZacksTrade, click OK. It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not). A P/B of 2 means it's selling at 2 times its book value. George Young • December 13, 2018 • Fox Business Countdown to the Closing Bell. Zacks Style Scores Education - Learn more about the Zacks Style Scores. It steadily collapsed over the next few years; by 2015, it had bottomed out below $4. 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. 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. 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. The Growth Scorecard evaluates sales and earnings growth along with other important growth measures. The Cash/Price ratio is calculated as cash and marketable securities per share divided by the stock price. If we get a positive reaction to earnings, I need to see a close over the 10-week moving average near $33.80. A rising stock on above average volume is typically a bullish sign whereas a declining stock on above average volume is typically bearish. It is essentially the inverse of the P/E ratio. WW is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. A P/B of 0.5 means its selling at half its book value. He reminds investors to remain patient with the market and look to the long term. Maybe Weight Watchers works. Like most ratios, this number will vary from industry to industry. First, let's address the big thing we've all noticed in Weight Watchers International (NASDAQ:WTW) and that's the stock has been a huge dud. Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. While our testing has found that a P/S ratio of <2 is the optimum range for returns, be sure to compare this ratio to its respective industry. As we saw in Q3, the results do matter, even if the outlook is strong. It's then divided by the number of shares outstanding to determine how much cash is generated per share. It would seem like Weight Watchers (NASDAQ:WTW) stock is cheap. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. 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. What happened . In general, a lower number or multiple is usually considered better that a higher one. Seeing a stock's EPS change over 1 week is important. ET by Tomi Kilgore Oprah’s tour drove Weight Watchers … Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B. If a stock's Q1 estimate revision decreases leading up to its earnings release, that's usually a negative sign, whereas an increase is typically a positive sign. This is a medium-term price change metric. If a company's expenses are growing faster than their sales, this will reduce their margins. 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. EBITDA, as the acronym depicts, is earnings before interest, taxes, depreciation and amortization. Seeing a company's projected sales growth instantly tells you what the outlook is for their products and services. ROE is always expressed as a percentage. A P/S ratio of 2 means you're paying $2 for every $1 of sales the company makes. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. It all began in October 2015, when Oprah Winfrey announced that she’d acquired 10% of Weight Watchers as an investment, would join the Board of Directors, and serve as a spokesperson for the company. So the PEG ratio tells you what you're paying for each unit of earnings growth. Apr 11, 2019 9:56 AM EDT. The technique has proven to be very useful for finding positive surprises. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. Seeking Alpha Weight Watchers Stock Today. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. While Q3 wasn’t a bad quarter, the company did miss on earnings and revenue expectations. Like the P/E ratio, a lower number is considered better. Simply put, it’s been a rough ride for WTW stock. Once again, cash flow is net income plus depreciation and other non-cash charges. “New year, new me,” they say. Visit www.zacksdata.com to get our data and content for your mobile app or website. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. Debt to Capital (or D/C ratio) is the fraction of debt (including mortgages and long-term leases) to long-term capitalization. Will We Ever Feel Comfortable Going to the Gym Again. While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. Weight Watchers International, Inc. stock has fallen -39.05% over the last 12 months, and the average rating from Wall Street analysts is a Buy.InvestorsObserver’s proprietary scoring system, gives WW stock a score of 49 out of a possible 100.. That score is chiefly influenced by a short-term technical score of 30. The Projected Sales Growth (F1/F0) looks at the estimated growth rate for the current year. Since there is a fair amount of discretion in what's included and not included in the 'ITDA' portion of this calculation, it is considered a non-GAAP metric. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). Either way, it doesn’t matter. Weight Watchers International, Inc stock price fell more than -6.69% Monday closing at $26.35 (Updated on December 28, 2020) Sell candidate since 2020-12-18 Loss -1.68% PDF . Weight Watchers stock is up almost 70% over the last three months, but the company is facing a number of issues that may hold back its revenue … After the P/E ratio, it's one of the most common valuation metrics. The value of Oprah Winfrey's stake in Weight Watchers has plunged too. Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings). Analysts had estimated earnings of $.19, and as Weight Watchers exceeded this expectation, analysts are slowly becoming more inclined to encourage the purchase of the stock. But they all have their place in the Growth style. 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. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone. The Growth Scorecard table also displays the values for its respective Industry along with the values and Growth Score of its three closest peers. And, of course, the 4 week change helps put the 1 week change into context. Macroaxis provides Weight Watchers buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WTW positions. Trading in Weight Watchers stock over the past few years has been something close to incredible. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. Signals & Forecast. To learn more, click here. 1125 N. Charles St, Baltimore, MD 21201. But, typically, an aggressive growth trader will be interested in the higher growth rates. 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. Should WTW stock react negatively to earnings, look to see that the bottom of downtrend support holds, currently near $25. Should we get it, then it can kickstart a larger rally, perhaps up to $40, where a prior downtrend line current resides. The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). Growth estimates for 2019 stand at 8.2%, with earnings forecast to grow another 20% to $3.43 per share. It is the most commonly used metric for determining a company's value relative to its earnings. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. 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 … 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.