Back to top

Image: Bigstock

Wingstop (WING) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

In the latest trading session, Wingstop (WING - Free Report) closed at $422.66, marking a -0.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 0.71%.

The restaurant chain's shares have seen an increase of 10.43% over the last month, surpassing the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.53%.

The upcoming earnings release of Wingstop will be of great interest to investors. The company's upcoming EPS is projected at $0.78, signifying a 36.84% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $140.87 million, showing a 31.45% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.40 per share and a revenue of $588.25 million, representing changes of +37.1% and +27.87%, respectively, from the prior year.

Any recent changes to analyst estimates for Wingstop should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Wingstop presently features a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Wingstop is at present trading with a Forward P/E ratio of 125.36. This expresses a premium compared to the average Forward P/E of 20.02 of its industry.

Also, we should mention that WING has a PEG ratio of 5.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.78.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 36% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Wingstop Inc. (WING) - free report >>

Published in