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Wingstop (WING) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Wingstop (WING - Free Report) ending at $367.80, denoting a +0.38% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.6%, and the tech-heavy Nasdaq gained 0.11%.

The restaurant chain's stock has climbed by 0.03% in the past month, falling short of the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 3.32%.

Market participants will be closely following the financial results of Wingstop in its upcoming release. In that report, analysts expect Wingstop to post earnings of $0.72 per share. This would mark year-over-year growth of 22.03%. Our most recent consensus estimate is calling for quarterly revenue of $133.59 million, up 22.88% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.98 per share and a revenue of $554.72 million, signifying shifts of +20.16% and +20.58%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Wingstop. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.78% upward. Right now, Wingstop possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Wingstop is holding a Forward P/E ratio of 122.86. Its industry sports an average Forward P/E of 22.51, so one might conclude that Wingstop is trading at a premium comparatively.

It is also worth noting that WING currently has a PEG ratio of 6.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.84 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WING in the coming trading sessions, be sure to utilize Zacks.com.


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