Analysts expect this wellness company to grow at a rate of 21.3% this year.
WW International, Inc. (WW)
From Power Growth Investor
WW International, Inc. (WW, TSINetwork Rating: Extra Risk) is on the move again after a bad start to 2019. The company rebranded itself as WW in the fall of 2018, when it expanded its weight-loss services to include “Wellness that works” programs. The move reflects the company’s goal of promoting healthy living, in general, rather than just weight loss.
However, it have failed to effectively communicate the rebranding. The stock dropped to as low as $16.71 in May 2019, but has rebounded 121% for investors since then. That’s on the strength of an effective new TV campaign, plus a continued focus on various social media channels. As well, major shareholder and media celebrity spokesperson Oprah Winfrey has been taking an active and effective promotional role.
Weight Watchers had 4.2 million active subscribers as of September 30, 2019. That’s up an impressive 7.7% from 3.9 million at the start of last year.
That subscriber growth should lead to improved sales and profits. The company now expects to make $2.04 a share in 2020—and the stock trades at a reasonable 20.6 times that forecast. We think today’s stock price marks an ideal entry point for investors looking to profit from the company’s turnaround. WW International is a Power Buy.
Patrick McKeough, Power Growth Investor, www.tsinetwork.ca, 888-292-0296, February 2020