Weight Watchers International (WTW) Moving On Heavy Pre-Market Trading

Trade-Ideas LLC identified Weight Watchers International (WTW) as a pre-market mover with heavy volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Weight Watchers International

(

WTW

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Weight Watchers International as such a stock due to the following factors:

  • WTW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.3 million.
  • WTW traded 411,222 shares today in the pre-market hours as of 9:17 AM, representing 15.2% of its average daily volume.

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More details on WTW:

Weight Watchers International, Inc. provides weight management services worldwide. The company operates through North America, United Kingdom, Continental Europe, and Other segments. WTW has a PE ratio of 2. Currently there is 1 analyst that rates Weight Watchers International a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Weight Watchers International has been 4.0 million shares per day over the past 30 days. Weight Watchers International has a market cap of $923.0 million and is part of the services sector and diversified services industry. The stock has a beta of 2.70 and a short float of 74.9% with 5.86 days to cover. Shares are down 33.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Weight Watchers International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • WEIGHT WATCHERS INTL INC's earnings per share declined by 48.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, WEIGHT WATCHERS INTL INC reported lower earnings of $1.74 versus $3.63 in the prior year. For the next year, the market is expecting a contraction of 61.5% in earnings ($0.67 versus $1.74).
  • Net operating cash flow has decreased to $33.73 million or 47.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.47%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 48.42% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Diversified Consumer Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 48.4% when compared to the same quarter one year ago, falling from $54.00 million to $27.88 million.
  • The revenue fell significantly faster than the industry average of 12.5%. Since the same quarter one year prior, revenues fell by 22.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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