In the latest trading session, Wingstop (WING) closed at $275.67, marking a -3.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq decreased by 0.1%.
Coming into today, shares of the restaurant chain had gained 18.76% in the past month. In that same time, the Retail-Wholesale sector gained 5.42%, while the S&P 500 gained 2.26%.
The investment community will be paying close attention to the earnings performance of Wingstop in its upcoming release. The company's upcoming EPS is projected at $0.85, signifying a 3.41% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $179.11 million, up 10.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.93 per share and a revenue of $702.13 million, demonstrating changes of +7.38% and 0%, respectively, from the preceding year.
Any recent changes to analyst estimates for Wingstop should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.83% lower. At present, Wingstop boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Wingstop is currently trading at a Forward P/E ratio of 59.82. This represents a premium compared to its industry average Forward P/E of 20.4.
Investors should also note that WING has a PEG ratio of 3.25 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry had an average PEG ratio of 2.13 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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