WW International (WW) Dips More Than Broader Markets: What You Should Know

In the latest trading session, WW International (WW) closed at $36.17, marking a -1.58% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.59%.

Coming into today, shares of the weight-loss program operator had lost 2.83% in the past month. In that same time, the Consumer Discretionary sector gained 2.73%, while the S&P 500 gained 2.7%.

WW will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2019. In that report, analysts expect WW to post earnings of $0.67 per share. This would mark a year-over-year decline of 33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $353.93 million, down 3.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $1.42 billion. These totals would mark changes of -46.71% and -6.41%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for WW. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. WW is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, WW currently has a Forward P/E ratio of 21.58. This valuation marks a premium compared to its industry's average Forward P/E of 16.65.

Investors should also note that WW has a PEG ratio of 1.44 right now. 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 industry had an average PEG ratio of 1.5 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WW in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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