Weight Watchers International, Inc. (NYSE: WTW)
Weight Watchers is having yet another incredible day in the market today. This is following up on big gains that we’ve seen recently. Today, as soon as the opening bell rang, the stock started on a mad dash toward the top. Since then, we’ve seen a continuation of gains bringing the value higher and higher. Below, we’ll talk about what we’re seeing, why, and what investors should be watching for with regard to WTW ahead.
What We’re Seeing From WTW
As mentioned above, Weight Watchers is having an overwhelmingly strong day in the market today. At the opening bell, the stock was slightly in the green. From there, we’ve seen aggressive gains as investors push the stock higher and higher. Currently (11:59), WTW is trading at $13.65 per share after a gain of $2.57 per share or 23.19% thus far today.
Why The Stock Is Gaining
As mentioned above, today isn’t the first day that we’ve seen gains on WTW recently. In fact, if you look back, the stock has been headed up for some time. The truth is that there is not one singular factor that’s causing this. Ultimately, the gains on the stock are being caused by a big mix of positivity. Here’s what’s happening…
- Oprah Winfrey – Last year, we learned that Oprah Winfrey had decided to play a big role in business at Weight Watchers. In fact, she purchased a large stake in the company. Since then, Oprah has been talking and tweeting about how the company has helped her to lose weight. With her being such a major role model to the masses, this is helping with sales and boosting confidence among investors.
- Top Ranked Plan – Recently U.S. News and World Report evaluated several diet plans. In fact, 38 plans were evaluated by the news outlet. In the evaluation, the report showed that WTW ranked #4 out of the 38 diet plans. Of course, #1 would be better, but at the end of the day, #4 isn’t too shabby either and it’s surely impressing investors. Not to mention, in the publication, the report said that the diet plan was “smart and effective.”
- Price Target Update – Finally, analysts seem to love it too. In fact, just today, Sidoti increased the price target on the stock. The firm now has a price target of $28 per share. This target is up from $25 per share.
What To Watch Ahead
Moving forward, there’s no doubt in my mind that we’re going to see several opportunities surrounding Weight Watchers. However, in order to take advantage of these opportunities, you’ll want to keep tabs on the news. In particular, it’s going to be important to watch sales reports for this quarter. At the end of the day, investors are expecting massive growth, and rightfully so. However, if the sales don’t match the expectations we could see big declines. If the sales surpass expectations, gains could be massive. So, the key word here is sales!
What Do You Think?
Where do you think WTW is headed moving forward? Join the discussion in the comments below!