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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Weight Watchers International, Inc. (NASDAQ:WTW) due to its excellent fundamentals in more than one area. WTW is a company with a a great track record of performance, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Weight Watchers International here.
Undervalued with solid track record
Over the past few years, WTW has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did WTW outperformed its past performance, its growth also exceeded the Consumer Services industry expansion, which generated a 30% earnings growth. This is an notable feat for the company. WTW’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if WTW’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, WTW’s share price is trading below the group’s average. This supports the theory that WTW is potentially underpriced.
For Weight Watchers International, I’ve put together three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for WTW’s future growth? Take a look at our free research report of analyst consensus for WTW’s outlook.
- Financial Health: Are WTW’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WTW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.
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