Wingstop (WING – Free Report) ended the recent trading session at $290.85, demonstrating a -0.31% swing from the preceding day’s closing price. This change lagged the S&P 500’s 0.04% loss on the day. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.05%.
Shares of the restaurant chain witnessed a loss of 11.93% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.87% and the S&P 500’s gain of 1.05%.
Analysts and investors alike will be keeping a close eye on the performance of Wingstop in its upcoming earnings disclosure. The company is expected to report EPS of $0.87, up 35.94% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $164.74 million, indicating a 29.65% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.67 per share and a revenue of $628.72 million, representing changes of +47.98% and +36.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Wingstop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. Wingstop is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Wingstop is currently trading at a Forward P/E ratio of 79.45. This valuation marks a premium compared to its industry’s average Forward P/E of 25.02.
Investors should also note that WING has a PEG ratio of 2.72 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As of the close of trade yesterday, the Retail – Restaurants industry held an average PEG ratio of 2.3.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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