In the latest trading session, Wingstop (WING) closed at $366.36, marking a +1.66% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.
The restaurant chain’s stock has dropped by 15.45% in the past month, falling short of the Retail-Wholesale sector’s loss of 2.12% and the S&P 500’s loss of 1.16%.
The investment community will be paying close attention to the earnings performance of Wingstop in its upcoming release. The company is slated to reveal its earnings on July 31, 2024. The company’s earnings per share (EPS) are projected to be $0.82, reflecting a 43.86% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $143.98 million, indicating a 34.35% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.48 per share and revenue of $594.26 million, which would represent changes of +40.32% and +29.17%, respectively, from the prior year.
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. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.21% higher. Wingstop is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Wingstop currently has a Forward P/E ratio of 103.7. This indicates a premium in contrast to its industry’s Forward P/E of 19.49.
It’s also important to note that WING currently trades at a PEG ratio of 4.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Retail – Restaurants industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons 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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Wingstop Inc. (WING) : Free Stock Analysis Report
