Quick Win by the Algorithm: Weight Watchers Stock Soars

Quick Win by the Algorithm:

On April 28th, 2017, the I Know First algorithm issued a bullish 3 month forecast for Weight Watchers International (NYSE:WTW). The forecast showed a signal of 555.98 and a predictability of 0.32. As a result, in accordance with the forecast, the company’s stock produced a return of 78.48% over this period, solidifying another quick win by the I Know First algorithm.

quick win

Weight Watchers International, Inc. provides weight management services worldwide. It offers a range of products and services comprising nutritional, activity, behavioral, and lifestyle tools and approaches. The company also engages in the meetings business, which presents weight management programs. Additionally, the company licenses the Weight Watchers brand and other intellectual property. Weight Watchers International, Inc. was founded in 1961 and is headquartered in New York, New York.

quick win

The biggest reason for the recent success of Weight Watchers was the attractive earnings report that was released on August 3, 2017. Shares were trading at $33.06 when markets closed on Thursday and opened the next day at $41.08, a 24.26% increase overnight.

Some notable parts of the earnings report were a 20% increase in subscriptions for the second quarter, which mostly drove a 12% increase in sales compared to a year ago. Earnings came in at 67 cents per share, adjusted, topping analysts’ estimates of 51 cents. Weight Watchers now anticipates earnings per share to be within $1.57 to $1.67 for the full year.

It is also impossible to write about Weight Watchers without mentioning Oprah Winfrey as the catalyzer for its success. Ever since she associated herself with the brand in 2015, WTW has been going up and up (after years of losses). She has been on board since her investment and figures to be for a while. She keeps stating that her 40 pound loss is attributable to Weight Watchers.

Current I Know First subscribers received this bullish WTW forecast on April 28th, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.