4-Star Stocks Making a Comeback: Weight Watchers

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 respected four-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 (1961)

Market Cap

$3.2 billion

Industry

Personal services

Trailing-12-Month Revenue

$1.8 billion

Management

CEO David Kirchhoff (since December 2006)
CFO Nicholas Hotchkin (since August 2012)

Return on Capital (average, past 3 years)

43.3%

Total Debt

$2.3 billion

Dividend Yield

1.2%

Competitors

Ediets.com
Jenny Craig
Nutrisystem
(NASDAQ: NTRI  )

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

On CAPS, 97% of the 570 members who have rated Weight Watchers believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, LenarHoyt, brought the company's growth initiatives to our community's attention:

While a [Weight Watchers] subscription may be "discretionary spending", it is less expensive than what the conditions of health insurance are going to be. I see the "meeting" revenue almost going away because the Monthly Pass program makes meetings half price and you pick up all of the online tools. Weightwatchers is moving away from the old "on paper + meeting" route. ... It also takes [Weight Watchers] research and development costs to the absolute bargain basement as they will be capturing a tremendous amount of data and research from the etools!

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