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Wingstop (WING) Stock Moves -2.20%: What You Should Know

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Wingstop (WING - Free Report) ended the recent trading session at $356.09, demonstrating a -2.2% change from the preceding day's closing price. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.31%.

The stock of restaurant chain has risen by 7.5% in the past month, leading the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 5.05%.

The investment community will be paying close attention to the earnings performance of Wingstop in its upcoming release. In that report, analysts expect Wingstop to post earnings of $0.87 per share. This would mark a year-over-year decline of 6.45%. Our most recent consensus estimate is calling for quarterly revenue of $173.63 million, up 11.52% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.9 per share and revenue of $730.74 million, which would represent changes of +6.56% and +16.77%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Wingstop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. Right now, Wingstop possesses a Zacks Rank of #2 (Buy).

Looking at its valuation, Wingstop is holding a Forward P/E ratio of 93.42. This represents a premium compared to its industry average Forward P/E of 23.01.

It is also worth noting that WING currently has a PEG ratio of 5.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.62.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 42% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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