Winning WTW Stock Forecast: Weight Watchers Continues Winning As Oprah Effect Fades

“Weight Watchers has always been the authority on healthy, effective, sustainable weight loss and weight management. 2018 is no different with our new program, supported by excellent marketing, propelling growth worldwide.” – Mindy F. Grossman, President, CEO, & Director of Weight Watchers International, Inc.  

Winning WTW Stock Forecast

(Source: Wikimedia Commons)

Weight Watchers International, Inc. (NYSE : WTW) provides weight management products and services to subscribers around the world through meetings, the Weight Watchers app, and tools for weight management. Weight Watchers International has had an extremely strong year with gains of over 200% between July 2, 2017 and July 2, 2018. Over this time period, WTW also hit a new 52 week high of $105.73. Throughout this time period, the stock also had generally bullish technical indicators and stayed above the 50 day and 200 day moving averages for the majority of the year.

(Source: Yahoo Finance)

Weight Watchers International not only finished off the 2017 fiscal year with solid results, but also started off the 2017 fiscal year with a robust earnings report and a positive outlook. The financials for the company have been positive with FY 2017 revenue growing 12.1% to $1,306.9 million and EPS of $2.40 compared to $1.03 the year prior. Additionally, for Q1 2018, revenue increased 20% YoY- a faster rate of revenue growth than for past years. The company showed great strength in new member sign ups and retention in North America, Continental Europe, and the U.K. which all delivered higher profitability and retention rates. WeightWatchers also had its top global sign-up days since its inception and ended Q1 2018 with 4.6 million worldwide subscribers, also a new membership record. This growth has been driven by a revamp to the Weight Watchers brand.

One of the main ways that Weight Watchers International has attracted the younger generations is through celebrity partnerships. In the past, WTW has benefitted from the Oprah effect; in 2015, Oprah bought a 10% share in the company at a stock price of ~$7. Since then the stock has increased by over 1,000% and EPS have increased over 300%. Even as the Oprah effect has dampened (she sold a portion of her shares recently to reap part of her profits and diversify her portfolio), Weightwatchers has remained successful in its celebrity partnerships employing influencers with the most efficient reach. France was Weight Watcher International’s greatest performing market thanks to a breakthrough marketing campaign with French singer Hélène Ségara. Additionally, Weight Watchers is working to break into the men’s weight loss industry by hiring male influencers. Recently, DJ Khlaed became a WW Ambassador and engaged with millions across his social media accounts. Right now only about 15% of subscribers are men, so hopefully seeing other males successful with their weight loss through the program will inspire others. Other male influencers include Eric Greenspan, a famous chef, and Kevin Smith, an actor and director. These marketing campaigns have been very effective and efficient and have grown subscriber and revenue growth for WTW.

I Know First Algorithm Success With WTW

On July 2, 2017, as part of the aggressive stock forecast, the I Know First algorithm gave a bullish prediction for WTW with a signal of 97.05 and predictability of .54. In accordance with the I Know First forecast, WTW grew by 202.18% , highlighting the accuracy of the self-learning algorithm.   

Current I Know First subscribers received this bullish WTW forecast on July 2, 2017.

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