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's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for WTW turned positive on November 29, 2024. Looking at past instances where WTW's MACD turned positive, the stock continued to rise in of 44 cases over 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 November 27, 2024. You may want to consider a long position or call options on WTW as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 325 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 265 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 December 03, 2024. 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.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. WTW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (2.944) is normal, around the industry mean (72.373). P/E Ratio (27.483) is within average values for comparable stocks, (27.283). WTW's Projected Growth (PEG Ratio) (1.351) is slightly lower than the industry average of (2.037). Dividend Yield (0.012) settles around the average of (0.019) among similar stocks. P/S Ratio (3.057) is also within normal values, averaging (2.749).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of weight management services
Industry InsuranceBrokersServices