Wingstop (WING – Free Report) closed the latest trading day at $235.96, indicating a -0.19% change from the previous session’s end. This change lagged the S&P 500’s 0.67% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.
The the stock of restaurant chain has risen by 3% in the past month, leading the Retail-Wholesale sector’s loss of 6.91% and the S&P 500’s loss of 5.28%.
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 $0.84, down 14.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $171.18 million, up 17.41% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.66 per share and revenue of $732.01 million, which would represent changes of 0% and +16.97%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Wingstop. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.93% decrease. Wingstop is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Wingstop is holding a Forward P/E ratio of 64.57. This represents a premium compared to its industry’s average Forward P/E of 23.03.
One should further note that WING currently holds a PEG ratio of 3.77. 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 Retail – Restaurants industry currently had an average PEG ratio of 2.15 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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