3 Reasons to Avoid WWW and 1 Stock to Buy Instead

October 15, 2025 at 00:03 AM EDT

WWW Cover Image

The past six months have been a windfall for Wolverine Worldwide’s shareholders. The company’s stock price has jumped 140%, hitting $25.79 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Is there a buying opportunity in Wolverine Worldwide, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free for active Edge members.

Why Do We Think Wolverine Worldwide Will Underperform?

We’re happy investors have made money, but we're sitting this one out for now. Here are three reasons you should be careful with WWW and a stock we'd rather own.

1. Revenue Spiraling Downwards

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Wolverine Worldwide’s demand was weak over the last five years as its sales fell at a 1.6% annual rate. This wasn’t a great result and signals it’s a low quality business.

2. EPS Trending Down

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Sadly for Wolverine Worldwide, its EPS declined by 5.3% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

Wolverine Worldwide Trailing 12-Month EPS (Non-GAAP)

3. Previous Growth Initiatives Have Lost Money

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

Wolverine Worldwide’s five-year average ROIC was negative 2%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer discretionary sector.

Wolverine Worldwide Trailing 12-Month Return On Invested Capital

Final Judgment

Wolverine Worldwide doesn’t pass our quality test. Following the recent rally, the stock trades at 17.8× forward P/E (or $25.79 per share). This valuation tells us a lot of optimism is priced in - we think there are better opportunities elsewhere. We’d recommend looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce.

Stocks We Would Buy Instead of Wolverine Worldwide

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

About Us

About Cabling Installation & Maintenance

Contact Cabling Installation & Maintenance

Editorial

Advertising and Sponsorship Sales

Subscriptions and Memberships

Feedback/Problems