WWE: Weekly Stock Highlights #5, Oct 29th – Nov 2nd, 2018
WWE stock ended a week with a strong Tuesday and Wednesday to barely rise from a close of $69.78 last Friday to settle at $70.16 today thanks to choppy days on Monday, Thursday, and Friday. This represents a one-week increase of +0.55%.
This is the first week since I have covered the stock on Daily DDT that the stock has gone up week over week. That said, since I have started covering WWE stock on Daily DDT (about 5 weeks), the stock is down -27.94% ($97.36).
WWE’s 52-week low is $25.92. Thus, WWE still trades 170.68% above that benchmark. It has been as high as +330% this year.
WWE STOCK PERFORMANCE, WEEK OF 10/29 TO 11/2
| Day | Open | Close | Change |
| Monday | $70.69 | $66.16 | -5.19% |
| Tuesday | $66.00 | $68.54% | +3.60% |
| Wednesday | $69.64 | $72.59 | +5.91% |
| Thursday | $72.40 | $71.74 | -1.17% |
| Friday | $72.33 | $70.16 | -2.20% |
Highlights From The Week
There were no major catalysts this week so I thought I’d take the time to review a phrase I’ve been using in my past few highlights. For the past few weeks, I’ve said “alongside the broader market” which simply means that there are many days where a stock like WWE will rise/fall alongside the rest of the market (e.g., Dow Jones, S+P 500, and NASDAQ). When a stock like WWE rises as much as it has over the last year, sometimes a small 1-2% decline in the broader market will result in a heavier decline in the stock. This is usually the result of people who are up big on the stock taking some profits and/or closing their position.
Earnings weeks (like last week) tend to be a different ballgame entirely and are always interesting to watch. Last week when WWE reported 3Q earnings the stock fell by 2.22% on a day the broader market was up 1.8%. Let’s take a look at some charts that show how WWE has held up against the broader market (S&P 500) over this week (5-day chart) and October (1-month chart)
5 Day Chart
1 Month Chart
Kevin’s Take
First, I’d like to do some market research. If you read this article on a weekly basis, write a quick something in the comments section below. I like to know that at least one person out there enjoys the content. So just say hello so I know!
WWE has generally been following the market which generally shows me that news stories like Saudi Arabia, while a PR nightmare, have not been impacting the stock. The fluctuations in October (based on the 1-month chart) generally followed the market right up until earnings last week.
WWE is currently trading at 53x 2019 earnings estimates ($1.31 EPS) and 22x 2020 earnings estimates ($3.29 EPS) based on Friday’s closing price of $70.16.
Catch Up: Last 3 Weekly Highlights
Weekly Highlights #4, Week of 10/22 through 10/26
Weekly Highlights #3, Week of 10/15 through 10/19
Weekly Highlights #2, Week of 10/08 through 10/12
Selected Analyst Reports
Kevin Cavanagh (Me!) via Seeking Alpha: $82 Price Target
KeyBanc: $104 Price Target (*High Price*)
Morgan Stanley: $100 Price Target
BTIG: $92 Price Target
Disclosure: I have no positions in WWE stock and no plans to initiate any positions within the next 72 hours. Investors should do their own due diligence before making any investment decisions.