Wingstop (WING) closed at $145.67 in the latest trading session, marking a +0.22% move from the prior day. This move lagged the S&P 500’s daily gain of 0.59%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.45%.
Coming into today, shares of the restaurant chain had lost 8.3% in the past month. In that same time, the Retail-Wholesale sector lost 4.56%, while the S&P 500 lost 4.33%.
Investors will be hoping for strength from Wingstop as it approaches its next earnings release. On that day, Wingstop is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 75%. Meanwhile, our latest consensus estimate is calling for revenue of $101.82 million, up 41.35% from the prior-year quarter.
WING’s full-year Zacks Consensus Estimates are calling for earnings of $1.66 per share and revenue of $354.47 million. These results would represent year-over-year changes of +22.96% and +25.47%, respectively.
It is also important to note the recent changes to 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.85% higher within the past month. Wingstop currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Wingstop currently has a Forward P/E ratio of 87.56. Its industry sports an average Forward P/E of 20.65, so we one might conclude that Wingstop is trading at a premium comparatively.
Also, we should mention that WING has a PEG ratio of 7.3. 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. The Retail – Restaurants industry currently had an average PEG ratio of 2.18 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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