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Here's Why Wingstop (WING) Fell More Than Broader Market
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Wingstop (WING - Free Report) closed at $100.84 in the latest trading session, marking a -12.09% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.78%.
The restaurant chain's stock has dropped by 0.87% in the past month, exceeding the Retail-Wholesale sector's loss of 5.39% and the S&P 500's loss of 1.99%.
The upcoming earnings release of Wingstop will be of great interest to investors. The company is predicted to post an EPS of $1.06, indicating a 2.75% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $195.65 million, indicating a 11.33% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.5 per share and revenue of $767.13 million. These totals would mark changes of +10.29% and +10.08%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Wingstop. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Wingstop possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wingstop has a Forward P/E ratio of 25.47 right now. For comparison, its industry has an average Forward P/E of 21.48, which means Wingstop is trading at a premium to the group.
We can additionally observe that WING currently boasts a PEG ratio of 1.36. 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. The average PEG ratio for the Retail - Restaurants industry stood at 1.77 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Wingstop (WING) Fell More Than Broader Market
Wingstop (WING - Free Report) closed at $100.84 in the latest trading session, marking a -12.09% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.78%.
The restaurant chain's stock has dropped by 0.87% in the past month, exceeding the Retail-Wholesale sector's loss of 5.39% and the S&P 500's loss of 1.99%.
The upcoming earnings release of Wingstop will be of great interest to investors. The company is predicted to post an EPS of $1.06, indicating a 2.75% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $195.65 million, indicating a 11.33% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.5 per share and revenue of $767.13 million. These totals would mark changes of +10.29% and +10.08%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Wingstop. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Wingstop possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wingstop has a Forward P/E ratio of 25.47 right now. For comparison, its industry has an average Forward P/E of 21.48, which means Wingstop is trading at a premium to the group.
We can additionally observe that WING currently boasts a PEG ratio of 1.36. 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. The average PEG ratio for the Retail - Restaurants industry stood at 1.77 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.