Strength Seen in WW International (WW): Can Its 25.9% Jump Turn into More Strength?

·2 min read

WW International WW shares ended the last trading session 25.9% higher at $34.73. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.4% loss over the past four weeks.

Shares of WW International jumped after the company posted better-than-expected first quarter earnings results. Notably, positive investor sentiments were witnessed as the company reported high-margin digital membership growth. Also, the company’s e-commerce business reflected strong growth momentum with sales increasing over 150% year over year. Going forward, the company expects to benefit from digital transformation initiatives, acquisitions, streamlining of operations and marketing efforts.

Price and Consensus

Price Consensus Chart for WW
Price Consensus Chart for WW

This weight-loss program operator is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +14.9%. Revenues are expected to be $345.35 million, up 3.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For WW International, the consensus EPS estimate for the quarter has been revised 4.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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