In the latest close session, Wingstop (WING) was down 1.31% at $240.33. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.
Shares of the restaurant chain have depreciated by 9.55% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.17%, and the S&P 500's gain of 0.94%.
Investors will be eagerly watching for the performance of Wingstop in its upcoming earnings disclosure. On that day, Wingstop is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 2.27%. Alongside, our most recent consensus estimate is anticipating revenue of $179.41 million, indicating a 10.87% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.94 per share and a revenue of $702.44 million, representing changes of +7.65% and +12.25%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Wingstop. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, Wingstop possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Wingstop is presently being traded at a Forward P/E ratio of 61.85. This denotes a premium relative to the industry average Forward P/E of 19.76.
One should further note that WING currently holds a PEG ratio of 3.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 2.3 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Wingstop Inc. (WING): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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