March 12, 2020
As the stock market get slammed again on Thursday, some weight loss public company stock valuations are looking mighty tempting, if you are a long-term value investor. Right now, blood is running in the streets, and that's when market gurus such as Warren Buffet advise us to be greedy and buy.
There are several stocks to consider in the weight loss arena. WW (Weight Watchers), which is a screaming bargain at $18-19, MED (Medifast) at about $67, and Herbalife (HLF) at about $26. These are prices well below pre-coronavirus levels. Once this crisis passes, long-term investors (i.e. 6 months to a year) should be richly rewarded. In Marketdata's opinion, the stock with the greatest chance of tripling from current levels after the virus subsides is WW
Consider these statements from Zachs.com...
"...One company value investors might notice is WW International (WW). WW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.73 right now. For comparison, its industry sports an average P/E of 19.92. Over the past year, WW's Forward P/E has been as high as 22.05 and as low as 10.30, with a median of 15.50.
Investors should also note that WW holds a PEG ratio of 0.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WW's industry currently sports an average PEG of 1.70. Within the past year, WW's PEG has been as high as 1.47 and as low as 0.62, with a median of 1.13.
These are just a handful of the figures considered in WW International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment."
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Contact Marketdata and 31-year independent industry analyst John LaRosa, at: 813-971-8080 or firstname.lastname@example.org. Reports, teleconference calls, custom research projects and more. See: https://www.marketdataenterprises.com/diet-market-our-specialty/