Tuesday, May 7, 2013

Why Weight Watchers Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, weight management services specialist Weight Watchers International (NYSE: WTW  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Weight Watchers and see what CAPS investors are saying about the stock right now.

Weight Watchers facts

 

 

Headquarters (founded)

New York, N.Y. (1961)

Market Cap

$2.4 billion

Industry

Personal services

Trailing-12-Month Revenue

$1.8 billion

Management

CEO David Kirchhoff

COO James Chambers

Return on Capital (average, past 3 years)

93.6%

Total Debt

$2.2 billion

Dividend Yield

1.6%

Competitors

Ediets.com

Jenny Craig

Nutrisystem

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 89% of the 264 members who have rated Weight Watchers believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, Windsurfing1, tapped Weight Watchers as a particularly tempting bargain opportunity:

Well established brand at quite some discount. Growing well internationally. Value play, and it has a dividend. Weight Watchers will continue to add value with people becoming more aware of what to eat and how to eat.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Weight Watchers may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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