Technical Breakout for Weight Watchers

11/13/2017 5:00 am EST

Focus: CONSUMER

Leo Fasciocco

Investment Columnist and Publisher, Ticker Tape Digest

Weight Watchers International (WTW) provides a variety of weight management services; it operates globally through a network of company-owned and franchise operations, notes Leo Fasciocco, technical breakout specialist and editor of Ticker Tape Digest.

Its products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites and mobile sites and products sold at meetings and via retail channels.

The company sells bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits. 

This year, analysts are forecasting a 49% increase in net to $1.45 a share from  97 cents the year before. The stock sells with a price-earnings ratio of 34. This year's earnings projections could be boosted.


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Net for the upcoming fourth quarter is expected to surge 63% to 31 cents a share from 19 cents the year before. Then in the first quarter of 2018, analysts predict a profit of 16 cents a share compared with a loss of one cent a share the year before.

For the full year in 2018, the Street looks for a 21% gain in net to $1.75 a share from the anticipated $1.45 this year.

The stock climbed from $28 back in June to a peak near $49 by August. It then pulled back and formed a shallow cup-and-handle base.

The shares have broken out to a four-year high. The breakout is impressive coming with a big gap move to the upside and expanding volume. WTW's momentum indicator is strongly bullish. We are targeting a move to $60.

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