Weight Watchers studio

Oprah Winfrey-Backed Wellness Stock Stumbles As GLP-1 Boom Reshapes Consumer Habits: Growth Score Plummets

Prominent weight-loss and wellness company, WW International Inc. (NASDAQ:WW), backed by renowned talk show host Oprah Winfrey, has seen better days, with the company filing for bankruptcy early this year, and continuing to teeter on the edge after relisting on the Nasdaq.

The company's struggles are largely tied to the surge in GLP-1 weight-loss drugs from giants like Novo Nordisk A/S (NYSE:NVO) and Eli Lilly And Co. (NYSE:LLY), a shift that has pushed many consumers away from traditional weight-loss and wellness programs.

Stock’s Growth Score Plummets

The Growth score in Benzinga’s Edge Stock Rankings is computed based on a company’s historic growth profile, that is, the pace at which earnings and revenues have grown over the years. The calculations give equal importance to both long-term and immediate trends, such as the latest quarterly earnings report.

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A sudden, steep decline in a stock’s Growth score often indicates a less-than-impressive quarterly earnings performance, which has impacted its long-term growth metrics.

WW International Inc.

Once a dominant force in the weight-loss industry, with regular endorsements coming from Winfrey herself, who also served on its board, the company is having a tough time staying relevant in a landscape that has been disrupted by GLP-1 drugs.

After emerging from Chapter 11 bankruptcy and re-listing on the Nasdaq earlier this year, the stock is down another 8.56% since then.

Its Growth score in Benzinga’s Edge Rankings has dropped from 68.77 to 13.22 within the span of a week, following the company’s third-quarter earnings this month, when it posted a 10% year-over-year decline in revenue, and a miss on analyst consensus estimates on the top and bottom lines.

The company currently remains in the midst of a turnaround, having recently introduced a menopause management program, alongside several others, to diversify from weight loss.

The stock scores poorly on Growth and Value in Benzinga’s Edge Stock Rankings, but has a favorable price trend in the long term. Click here for deeper insights into the stock, its peers and competitors.

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