Wingstop (WING) ended the recent trading session at $350.32, demonstrating a +1.21% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.13%.
Coming into today, shares of the restaurant chain had gained 5.6% in the past month. In that same time, the Retail-Wholesale sector gained 0.2%, while the S&P 500 gained 0.6%.
Analysts and investors alike will be keeping a close eye on the performance of Wingstop in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 6.45% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $173.63 million, up 11.52% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.9 per share and revenue of $730.74 million, which would represent changes of +6.56% and +16.77%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Wingstop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Currently, Wingstop is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Wingstop has a Forward P/E ratio of 88.8 right now. Its industry sports an average Forward P/E of 23.23, so one might conclude that Wingstop is trading at a premium comparatively.
One should further note that WING currently holds a PEG ratio of 4.84. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.58 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 36% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wingstop Inc. (WING): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
