Weight Watchers International
Year-to-date return: -28%
Weight Watchers International (WTW) has been punished so far in 2013 to the tune of 28% losses. A few reasons: Long-time CEO Dave Kirchoff quit in early August, while the company is dealing with increased competition from free online apps and activity monitors.
In the second quarter, Weight Watchers International’s revenue actually declined year-over-year by 4% on a constant currency business, and the stock lost 19% as a result.
It’s never recovered — but that sell-off was overdone.
See, the promising thing is that the board has hired Jim Chambers to take over as CEO. Chambers comes with executive stints at both Kraft Foods’ (KRFT) U.S. snack business and Mondelez International’s (MDLZ) Cadbury operations.
If you ask me, he’ll fix what needs fixing and have the profits rolling in in no time. Heck, only 18 months ago, the stock was trading above $80. And as it stands now, the company’s trailing P/E of 9 is the lowest multiple ever.