ValuEngine on Weight Watchers (WW) 10/09/2019

ValuEngine continues its STRONG BUY recommendation on WW INTL INC for 2019-10-07. Based on the information we have gathered and our resulting research, we feel that WW INTL INC has the probability to OUTPERFORM average market performance for the next year. 

Weight Watchers International, Inc. is the largest provider of weight control programs in the world. The core of their business is weekly meetings, in which they present their scientifically designed program, incorporating group support and education about healthy eating patterns, behavior modification and physical activity. Additional online memberships and apps give large numbers of health conscious people a means to track food intake, calories used, and weight loss progress.

The stock was fairly famously beaten down in 2018 and early 2019 after a mismanaged re branding by the company. The stock peaked at just over $100 a share in mid 2018, only to plummet to under $18 in less than a year. The current CEO has been actively moving the company away from an identity tied to weight loss to one that is more akin to general health and wellness.  The new WW brand is a result of that, dropping ‘weight’ from the brand. At first it did not go well.

However, WW can bring in the calvary. Oprah Winfrey is a powerhouse, and the spokesperson of WW, a board member, and a major stockholder. The new media campaign featuring Oprah will continue to help stabilize and in our opinion drive growth for WW. In addition to this, WW has gone through various bubbles and bursts in the past.  Fad diets come and go, but WW has over 50 years of history. The rebranding did not go as planned, but has possible long term benefits. In our opinion this simply means it is a good opportunity to buy WW at a lower price.
And the numbers support the above argument. ValuEngine’s one month forecast target price for WW is one of the best when compared to the approximately 4,000 US stocks we cover. It will be a fairly volatile ride, but ValuEngine continues its Strong Buy rating on WW. The price has already doubled off its low, but still has a way to go.

The ValuEngine 1 year forecast price target is $41.

Due to the strong ValuEngine 1 year forecast target and the strong buy rating, WW did make it into one of the portfolios traded by ValuEngine Capital Management LLC, a financial advisory firm that trades client accounts using the ValuEngine.com stock research. More information on this service is available on www.ValuEngineCapital.com .

Check out www.ValuEngine.com for all of the data on WW.