Weight Watchers (NYSE:WTW) had another incredible day in Wednesday trade. This follows big gains that we’ve seen recently. As soon as Wednesday's 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.
What We See
As mentioned above, Weight Watchers had an overwhelmingly strong day on Wednesday. At the opening bell, the stock was slightly in the green. From there, we saw aggressive gains as investors pushed the stock higher.
Why The Stock Is Gaining
Wednesday wasn't the first day that WTW saw gains. 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. Her celebrity is helping sales and boosting confidence among investors.
- Top Ranked Plan – Recently, U.S. News and World Report evaluated several diet plans. 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 and it’s surely impressing investors. Also, 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, Sidoti on Wednesday increased its price target on the stock. The firm now has a target of $28 per share, 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 expectations, we could see big declines. If they surpass expectations, gains could be massive. So, the key word is 'sales'.
Where do you think WTW is headed?