In the latest close session, Wingstop (WING) was down 3.99% at $258.14. The stock's performance was behind the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.
Shares of the restaurant chain have appreciated by 8.63% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.04%, and the S&P 500's gain of 1.19%.
Investors will be eagerly watching for the performance of Wingstop in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.86, indicating a 2.27% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $179.41 million, up 10.87% from the prior-year quarter.
WING's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $702.44 million. These results would represent year-over-year changes of +7.65% and 0%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wingstop. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Wingstop currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Wingstop is presently being traded at a Forward P/E ratio of 56.03. This denotes a premium relative to the industry average Forward P/E of 19.9.
It is also worth noting that WING currently has a PEG ratio of 3.04. 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 1.93.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 follow all of these stock-moving metrics, and many 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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