Today's Dead Cat Bounce Stock: Weight Watchers International (WTW)
Trade-Ideas LLC identified Weight Watchers International ( WTW) as a "dead cat bounce" (down big yesterday but up big today) 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 $17.4 million.
- WTW has traded 103,723 shares today.
- WTW is up 4.1% today.
- WTW was down 7% yesterday.
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More details on WTW: Weight Watchers International, Inc. provides weight management services worldwide. The company operates in four segments: North America, United Kingdom, Continental Europe, and Other. WTW has a PE ratio of 25. Currently there is 1 analyst that rates Weight Watchers International a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Weight Watchers International has been 3.2 million shares per day over the past 30 days. Weight Watchers International has a market cap of $897.4 million and is part of the services sector and diversified services industry. The stock has a beta of 3.34 and a short float of 96.3% with 14.34 days to cover. Shares are down 39% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Weight Watchers International as a
. Among the areas we feel are negative, one of the most important has been weak operating cash flow. Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to $1.95 million or 81.14% when compared to the same quarter last year. Despite a decrease in cash flow of 81.14%, WEIGHT WATCHERS INTL INC is still significantly exceeding the industry average of -1063.01%.
- This stock has increased by 61.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- WTW, with its decline in revenue, underperformed when compared the industry average of 0.9%. Since the same quarter one year prior, revenues fell by 20.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for WEIGHT WATCHERS INTL INC is rather high; currently it is at 51.33%. Regardless of WTW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -4.35% trails the industry average.
- WEIGHT WATCHERS INTL INC has improved earnings per share by 30.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WEIGHT WATCHERS INTL INC reported lower earnings of $0.59 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.59).
- You can view the full Weight Watchers International Ratings Report.
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