| Stock (Symbol) | Stock Price | |
Weight Watchers (WTW) |
$57 |
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| Data is as of | Expected to Report | Sector |
December 21, 2011 |
Feb 21 |
Retail & Restaurant |
| Sharek’s Take | ||
 Weight Watchers has almost worked off the fat profit growth and is heading towards a time where the numbers will be harder to come by. 2011 is a sensational year for Weight Watchers, but the current outlook for 2012 is low-teens profit growth. WTW has been beating the street, so high-teens growth could be had.At 13 times earnings (plus a 1% dividend yield) this stock is a good value. Personally, I’m more of a growth guy than a value guy, so I like WTW but don’t love it. |
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| One-Year Chart | ||
 The one-year chart shows WTW started the yer off with a bang. That was after the company guided estimates WAY higher for 2011. But that was pretty much it. The company shot its wad in the beginning then the rest of the year it didn’t give such awesome news.Now 14% growth is expected 2QtrsOut. That’s what WTW used to grow at, and is expected to grow at long-term. WTW might not be a growth stock in 2012. |
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| Earnings Table | ||
 Sales rose an astounding 30% last quarter, that’s awesome for Weight Watchers. Profits soared 76%. Gosh, I wish the company could bottle some of this success for next year.WTW beat by 10 cents, up from 5 cents 2QtrsAgo. Nice momentum, but investors don’t care about this stock anymore. I think they think this is just a one-year wonder. Once again, Annual Profit Estimates increased, but not so much. Momentum here remains ho-hum positive. Quarterly estimates show profit growth slowing to the low-teens in 2011. These estimates didn’t move much. I hope WTW can keep beating the street, cuz it sure isn’t upping. |
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| Fair Value | ||
 WTW is only worth 15 times earnings, upside for 2012 is only 16%. See why I like growth stocks better than value stocks? |
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| Ten-Year Chart | ||
 This ten-year chart shows why WTW isn’t a big fan among investors. Annual profit growth of 12% is good but not great. The stock based for more than half-a-decade before breaking out this year — then couldn’t hold onto its gains. Ho-hum. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
18 of 20 |
Weight Watchers doesn’t look like a stock I would own. I’m getting bored. In fact, I may sell the stock this quarter if I find a better growth stock. With a 13 P/E I thought this stock would have nice upside, but it doesn’t. Weight Watchers is ranked 18th in the 20 stock Growth Portfolio Power Rankings. WTW is not in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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