Weight Watchers (WTW, $20.38) falls -30%, weak outlook for 2019
Shares of Weight Watchers crashed 30% following a disappointing fourth quarter result and a poor outlook for 2019. Its adjusted fourth quarter earnings were 46 cents per share, versus a market estimate of 60 cents per share. Revenue reached $300 million versus a Wall Street expectation of $347 million. For 2019, the company expects to generate revenue of about $1.4 billion whereas analysts expected $1.66 billion in sales for the year.
CEO Mindy Grossman explains that Weight Watchers has been focused on improving member recruitment trends in light of the fact that their Winter Campaign did not recruit as expected. This year, they plan to introduce new creative with a stronger call-to-action to further optimize their media mix.
Under Grossman, WTW has shifted from a being a diet company, dropping ‘weight’ from its name and rebranding as WW last year. Younger customers tend to focus less on calorie counting and more on mindfulness of what they are eating.
The rebranding is also in-line with a long-term goal that expects that being a wellness partner the company will still have more to offer after customers have achieved their weight loss goals. In fact in 2019, they will focus on providing holistic wellness solutions that will retain their customers even after their initial weight loss.
Oprah Winfrey, who currently owns 8% of Weight Watchers, is its spokeswoman and board member. She is set to play a central role in the company’s spring television and digital marketing campaign.
WTW in upward trend: price rose above 50-day moving average on June 26, 2026
WTW moved above its 50-day moving average on June 26, 2026 date and that indicates a change from a downward trend to an upward trend. In of 33 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2026. You may want to consider a long position or call options on WTW as a result. In of 108 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 10-day moving average for WTW crossed bullishly above the 50-day moving average on July 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WTW advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 256 cases where WTW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WTW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
WTW broke above its upper Bollinger Band on July 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. WTW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WTW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.134) is normal, around the industry mean (6.325). P/E Ratio (15.544) is within average values for comparable stocks, (27.154). Projected Growth (PEG Ratio) (1.265) is also within normal values, averaging (1.541). Dividend Yield (0.014) settles around the average of (0.016) among similar stocks. P/S Ratio (2.614) is also within normal values, averaging (2.968).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of weight management services
Industry InsuranceBrokersServices
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