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Wingstop (WING) Dips More Than Broader Markets: What You Should Know

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Wingstop (WING - Free Report) closed at $160.64 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.

Prior to today's trading, shares of the restaurant chain had lost 2.81% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.79% and the S&P 500's loss of 1.25% in that time.

Wingstop will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.51, up 13.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $107.84 million, up 16.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $433.66 million, which would represent changes of +17.3% and +21.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Wingstop. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.51% higher within the past month. Wingstop is currently a Zacks Rank #3 (Hold).

Investors should also note Wingstop's current valuation metrics, including its Forward P/E ratio of 75.14. This valuation marks a premium compared to its industry's average Forward P/E of 22.63.

We can also see that WING currently has a PEG ratio of 3.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WING's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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