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The Company is a consulting firm focusing on providing professional consultative services on a fee basis.
Cash, earnings, and sales are all growing fast, the stock price seems to stay ahead of the S&P and the earnings estimates are up.
Showed up on a screen for solid 5 year growth with low debt, cash on hand and still at attractive P/E ratios.
The price recently went down. This was an overreaction to recent lower performance than expected.The company is in a market that may for short periods of time experience lower performance than expected and it was the case this time as its short term projects were affected by the crisis.As soon as we will start getting out of the economic crisis, short term projects will come in faster than the company will be able to handle as those that the clients did not request during the economic crisis will come in at the same time as the regular ones.Furthermore a large portion of its performance occurs in the second quarter of the calendar year.The current price is presently importantly understated and the real price for this stock will soon (probably around July after announcing its previous fiscal year performance) bounce back to its normal value, and possibly higher value than normal due to an overreaction in the other direction.
Short term momentum
I accidentaly picked this stock a few years ago, but it sure has helped!
Steady grower now for several years. Will continue.
Watson Wyatt is the classic IBD play, with an A+ rating. Looking at a yearly chart, you can see the stock is coming out of a double bottom, with a breakout around $51. At the end of February, the 50 day moving average crossed the 200 day moving average, which historically has been a positive for stock price performance.
This company provides consulting services regarding employee benefit packages, HR strategies, etc. Good Gross and Net profit margin. Consistently increasing sales and cash flow. Low debt. Price likely to cross its 2007 peak of $53
Mid-last year this stock was a steal. Missed the boat. See slow growth from here. Insiders recently selling big chunks in $46-48 price range.
lack of growth
Last three years have been steady but price has fluctuated pretty widely.
I work in the same industry at a privately held competitor of WW, and our industry is currently experiencing a very strong period across nearly all lines of business. Long term, the largest line of business (DB pension consulting) will decline, but there is a lot of work involved and revenue to be collected from freezing and terminating plans. New legislation (pension reform, stock option expening regulation, Medicare Part D, etc.) all provide a boost to the business, and Congress can't seem to leave these things alone.
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