Wingstop (WING) closed at $304.78 in the latest trading session, marking a -1.62% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.45%.
Shares of the restaurant chain witnessed a loss of 1.77% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.92%, and the S&P 500's gain of 3.07%.
Market participants will be closely following the financial results of Wingstop in its upcoming release. The company's earnings per share (EPS) are projected to be $0.96, reflecting a 9.09% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $188.76 million, up 16.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.01 per share and revenue of $731.55 million, which would represent changes of +9.56% and +16.9%, 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Wingstop holds a Zacks Rank of #3 (Hold).
In the context of valuation, Wingstop is at present trading with a Forward P/E ratio of 77.23. This expresses a premium compared to the average Forward P/E of 20.22 of its industry.
We can additionally observe that WING currently boasts a PEG ratio of 3.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.31.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Wingstop Inc. (WING): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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