Should I Buy WW International (WW)? Finance YouTuber Analysis

The YouTuber is buying WW International, believing it is undervalued despite past struggles. The company's clinic program for weight loss drugs is outperforming expectations, and overall subscribers have stabilized. With no debt due until 2028 and a low market cap relative to revenue, the stock is considered a deep value play with a target of $3.50-$4.

“I started buying ww in February 2022 around $9 a share but got more aggressive adding shares when it fell to into that three3 to4 range.”

The analyst views WW International as a buying opportunity, believing the stock's 87% drop from its 52-week high is overextended due to fears about weight loss drugs. He notes that not everyone wants GLP-1 drugs and that Weight Watchers is seeing faster-than-expected subscriptions to its own prescription clinic, suggesting good news could lead to a stock pop.

“I think the drop is overextended though and made ww one of my top 10 stocks too cheap to ignore in a recent video last week besides the fact that not everyone wants wants to lose weight at the expense of being hooked on a needle injection every week for their life as required by these glp1 drugs but Weight Watchers is also seeing faster than expected subscriptions to its own prescription Clinic any good news on progress to that clinic growth could be met by a pop in the shares.”

The YouTuber recommends WW International (Weight Watchers) as a buy, noting its recent support despite concerns about weight loss drugs. He argues the market's reaction is an overreaction and highlights WW's new clinic service that prescribes weight loss drugs, with early subscription estimates exceeding forecasts. The stock trades at a fraction of its historical valuation.

“ww International the old Weight Watcher seems to have found support recently and has the highest potential upside among the 10 stocks shares have plunged 79% over the last year as investors worry that weight loss drugs are going to destroy the dieting industry”

The YouTuber plans to buy more WW International shares, citing Oprah Winfrey's upcoming prime-time special on weight loss and GLP-1 drugs as a potential commercial for the company's new weight management clinic. He acknowledges it's a high-risk, high-return stock but notes no debt is due until 2028.

“I continue to hold the stock and will buy more Monday today on this news it's very high-risk High return potential stock though”

The analyst suggests buying WW International (Weight Watchers) as its shares are back in value territory below $5. He believes upcoming earnings could surprise on the upside, citing increased app downloads and an estimated 300,000 new subscribers in Q4, driven by its integration of GLP-1 weight loss drugs.

“Shares are back down now below $5 each and we're rolling up on earnings that I think could surprise on the upside”

The analyst believes the sell-off in WW International is overdone, returning the stock to 'value territory' at $4 a share. He highlights strong brand recognition, continued demand for weight loss apps, and the company's move into weight loss drugs via the acquisition of Sequence. Despite competition from Eli Lilly's direct-to-consumer model, he expects strong demand for these drugs to support WW's business, citing a 19% jump in app downloads.

“At $4 a share the stock is back in value territory and I think the sell-off is overdone.”

The YouTuber continues to hold WW International despite a 25% drop after Eli Lilly announced a direct delivery program for its weight loss drugs. He believes the company's holistic and membership-oriented approach will allow it to perform well even against drug makers' direct programs. He notes that subscriber numbers were turning higher in Q3 and anticipates Q4 results on February 6th could be a turning point.

“I still like and hold the shares here though I'm think they're getting close to the point where the stock traded before the program announcement last year I think the company does very well even against that drug Maker's direct program really on its just holistic and membership oriented approach.”

The stock has pulled back recently, possibly due to investor concerns ahead of earnings regarding its ability to deliver on weight loss drug initiatives. However, the YouTuber believes it's a strong brand with reliable cash flows and that any post-earnings dip would be a buying opportunity, expecting shares to return to $9-10.

“I think it does do well on that revenue and earnings maybe not as well as the market expects maybe these shares shares come down a little bit more but uh I think you buy at those if it comes down if it dips lower I think you buy in and I think these shares see you know $9 $10 a share again within the next few months”

WW International (Weight Watchers) is transitioning into the weight loss drug space by acquiring telehealth prescription company Sequence, which specializes in drugs like Ozempic. The YouTuber, who owns shares, notes that while the stock is not as cheap as when he initially recommended it, it still trades for less than annual sales and is expected to return to profitability next year, offering good upside for new investors.

“Shares are not as cheap as when I recommended them back in December but they still trade for less than annual sales and this is a company expected to return to profitability early next year.”

The YouTuber added 5,000 shares of WW International, noting that despite disappointing subscriber numbers and revenue, the company remains earnings and cash flow positive (adjusted for a one-time write-off). He considers the stock extremely cheap at 0.3 times sales and believes short sellers might be covering their positions, indicating potential upside.

“At these kinds of valuations, it is extremely cheap here. Earnings and subscriber numbers have been extremely disappointing over the last few years. I do own some of these shares. I've owned them over about the last six, seven months. But the shares have sold off too much.”

The analyst views WW International (Weight Watchers) as a risky but potential turnaround play, noting its transition to a full-service health company and shift to a digital-first model to cut expenses. Despite subscriber losses, a recent surge in exercise equipment sales suggests renewed interest in weight management, and the company's strong cash flow and balance sheet provide funding for its transition, with expected earnings growth.

“This is still a strong cash flow business generating 157 million in operational cash last year and 120 million in free cash flow.”

The YouTuber views WW International as a short-term value play, expecting a rebound as people emerge from the pandemic. The company is transitioning to a full-service health platform and shifting to a digital-first model to cut expenses. Despite recent sales declines, it generates strong cash flow and trades at a significant discount to its historical price-to-sales multiple, suggesting a quick return to at least $20 per share.

“This next stock I'm buying WW International ticker WW is another short-term value play here on a steep discount in these shares.”