Wednesday, 18 September 2019 06:04 GMT

Is Weight Watchers Stock a Buy-Low Opportunity?

(MENAFN - Weight Watchers (NASDAQ:WW) stock fell 4.67% to close out the week on August 16. Shares have dropped 28% in 2019 so far, but the stock has climbed 33% over the past three months. The company released its second quarter 2019 results on August 6.

The stock has enjoyed a bump on the back of an advertisement campaign featuring Oprah Winfrey. Subscribers grew to 4.6 million at the end of the quarter compared to 4.5 million at the same time last year.

Weight Watchers now expects revenue of $1.4 billion for the full fiscal year. It boosted its earnings forecast to between $1.55 and $1.70 per share compared to $1.35 to $1.55 per share previously. This is good news as the company had issued a profit warning back in February.

The uptick in forecast was encouraging after revenues fell 9.9% year-over-year to $369 million in the quarter. Net income fell to $53.8 million compared to $70.7 million in the previous year.

Shares of Weight Watchers had a price-to-earnings ratio of 12.4 as of close on August 16. The stock had an RSI of 57 at the time of this writing. Weight Watchers has crept back out of technically overbought territory and is still trading at the low end of its 52-week range.

The stock is worth monitoring, but there is still too much risk for me so soon after the profit warning in the winter.


Is Weight Watchers Stock a Buy-Low Opportunity?

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