The most recent trading session ended with Wingstop (WING – Free Report) standing at $285.63, reflecting a -1.79% shift from the previouse trading day’s closing. This change lagged the S&P 500’s 1.11% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.
Shares of the restaurant chain witnessed a loss of 12.2% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 1.42% and the S&P 500’s gain of 0.4%.
The upcoming earnings release of Wingstop will be of great interest to investors. It is anticipated that the company will report an EPS of $0.87, marking a 35.94% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $164.74 million, up 29.65% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.67 per share and revenue of $628.72 million, which would represent changes of +47.98% and +36.66%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Wingstop. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. As of now, Wingstop holds a Zacks Rank of #3 (Hold).
With respect to valuation, Wingstop is currently being traded at a Forward P/E ratio of 79.2. This denotes a premium relative to the industry’s average Forward P/E of 25.09.
We can additionally observe that WING currently boasts a PEG ratio of 2.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Retail – Restaurants was holding an average PEG ratio of 2.32 at yesterday’s closing price.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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