Wingstop (WING) closed at $249.23 in the latest trading session, marking a -1.52% move from the prior day. This move lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.
The restaurant chain's stock has dropped by 25.42% in the past month, falling short of the Retail-Wholesale sector's gain of 0.66% and the S&P 500's gain of 2.74%.
The upcoming earnings release of Wingstop will be of great interest to investors. The company is forecasted to report an EPS of $0.96, showcasing a 9.09% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $187.93 million, up 15.65% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4 per share and a revenue of $730.32 million, demonstrating changes of +9.29% and +16.7%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Wingstop. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Wingstop is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Wingstop is at present trading with a Forward P/E ratio of 63.28. This expresses a premium compared to the average Forward P/E of 22.91 of its industry.
Meanwhile, WING's PEG ratio is currently 3.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. WING's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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