WWW Trades Above 50 & 200-Day SMAs: Is Now the Right Time to Invest?

Wolverine World Wide, Inc. WWW has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends. The company ended Friday’s trading session at $22.79, above its 50 and 200-day SMAs of $22.41 and $15.65, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, indicates positive market sentiment and investor confidence in Wolverine’s financial stability and growth potential.WWW Trades Above 50 & 200-Day Moving AveragesImage Source: Zacks Investment ResearchShares of this leading designer and producer of innovative, niche footwear and accessories are currently trading 7.5% below its 52-week high of $24.64 attained on Dec. 11, 2024, making investors contemplate their next moves. In the past six months, WWW stock has gained 59.4% against the Zacks Shoes and Retail Apparel industry’s 3.4% decline.The company’s ongoing strategic approach and product diversification have also helped it to outperform the broader Zacks Consumer Discretionary sector and the S&P 500 index’s growth of 12.3% and 8.2%, respectively, during the same period.WWW Stock Past Six-Month PerformanceImage Source: Zacks Investment ResearchInnovation and DTC Excellence Drive Wolverine’s GrowthWolverine's growth strategy focuses on refining its brand portfolio and optimizing operations. By emphasizing core brands and enhancing efficiencies, the company has strategically reallocated resources to maximize profitability.Merrell, a flagship brand, achieved a 1.4% year-over-year revenue increase in the third quarter of 2024, propelled by successful launches such as the Moab Speed 2 and Agility Peak 5. Looking ahead to 2025, the debut of the Speed Arc Collection—featuring advanced materials and innovative designs—aims to reinforce Merrell’s leadership in the hiking and trail footwear market.Saucony is strengthening its foothold in both performance and lifestyle segments. The brand plans to launch the Endorphin Elite 2 in spring 2025 and significantly expand its reach by adding 900 lifestyle-focused retail locations. These initiatives are enhancing brand equity and positioning Wolverine for sustainable growth across key market segments.The company’s direct-to-consumer (DTC) channels also posted solid performance, with Merrell and Saucony delivering mid-single-digit growth in the third quarter. This success stems from Wolverine’s investments in digital innovation and premium shopping experiences.International Expansion Powers WWW’s GrowthInternational markets played a pivotal role in Wolverine’s success during the third quarter. Merrell achieved mid-teens growth in EMEA and mid-single-digit growth in Asia-Pacific, driven by targeted strategies such as high-profile brand activations in Tokyo’s Shibuya and Harajuku districts. Similarly, Saucony reported robust growth internationally, with significant gains in Asia-Pacific following its revamped business model in China. These outcomes underscore Wolverine’s ability to localize brand strategies and capture opportunities in diverse global markets, providing a strong foundation for sustained international expansion.Moreover, the company has opened a new 11,000-square-foot global Innovation Hub at 90 Causeway Street in Boston, MA, to support design, development and merchandising teams, including Saucony’s product team. This strategic move underscores the company’s commitment to fostering creativity, collaboration and innovation as it expands globally and enhances its focus on consumer-centric product development.Operational Efficiency Supports WWW’s Financial PerformanceWolverine’s turnaround strategy emphasizes operational efficiency and inventory optimization. During the third quarter, the company reduced inventory by 49.4% year over year to $285.5 million, improving cash flow and minimizing markdown risks. The company has modernized its supply chain, implemented cost-saving measures and optimized gross margins. The gross margin expanded 380 basis points year over year to 45.3%, supported by reduced supply-chain costs and minimal end-of-life inventory sales.Adjusted operating profit rose 28.7% year over year to $34.1 million in the third quarter, with an adjusted operating margin improvement of 210 basis points to 7.7%. These results demonstrate Wolverine’s ability to drive revenue growth while maintaining financial discipline.Moreover, Wolverine has significantly strengthened its balance sheet, reducing net debt by $370 million year over year to $563 million in the third quarter. This disciplined approach has lowered interest expenses and improved financial agility, positioning the company for continued success.Is Wolverine a Value Play?From a valuation perspective, the company stands out as a compelling value play within the industry, trading at a forward 12-month price-to-earnings ratio of 16.28, below the industry and the sector’s average of 26.26 and 18.42, respectively. This undervaluation highlights its potential for investors seeking attractive entry points. WWW's Value Score of B further emphasizes its investment appeal.Image Source: Zacks Investment ResearchEstimate Revisions Favoring WWW StockAnalysts have responded positively to Wolverine’s prospects, indicated in upward revisions in the Zacks Consensus Estimate for EPS. In the past 30 days, analysts have increased their estimates for the current quarter by 1 cent. The consensus estimate for earnings is pegged at 41 cents per share. The consensus estimate for the next quarter has also been raised 1 cent to 25 cents per share.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Image Source: Zacks Investment ResearchConclusionWolverine presents a compelling investment opportunity, driven by strong financial performance, operational efficiency and consistent innovation. The company’s ability to outperform industry peers, expand globally and enhance DTC channels reflects its solid growth strategy and adaptability in evolving markets. Trading above key technical indicators and with a valuation below industry averages, WWW offers both stability and growth potential. Combined with its robust brand portfolio and disciplined financial management, Wolverine positions itself as an attractive choice for investors seeking long-term value and sustainable returns. It currently sports a Zacks Rank #1 (Strong Buy).Other Key PicksSome other top-ranked stocks are lululemon athletica inc. LULU, Ralph Lauren Corp.  RL and Steven Madden, Ltd. SHOO.lululemon athletica inc. is a yoga-inspired athletic apparel company that creates lifestyle components. It presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings and sales indicates growth of 12.2% and 9.6%, respectively, from the fiscal 2024 figures. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.Ralph Lauren offers products in apparel, footwear, accessories, home furnishings and other licensed product categories. It currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for RL’s fiscal 2025 earnings and sales indicates growth of 14% and 3.6%, respectively, from the fiscal 2024 levels. RL delivered a trailing four-quarter average earnings surprise of 9.1%.Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Wolverine World Wide, Inc. (WWW): Free Stock Analysis Report Steven Madden, Ltd. (SHOO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks