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

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Wingstop (WING - Free Report) closed the most recent trading day at $179.84, moving -0.8% from the previous trading session. This move lagged the S&P 500's daily loss of 0.27%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the restaurant chain had gained 12.85% over the past month, outpacing the Retail-Wholesale sector's loss of 3.29% and the S&P 500's loss of 2.86% in that time.

Investors will be hoping for strength from Wingstop as it approaches its next earnings release. On that day, Wingstop is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $108.36 million, up 16.93% from the prior-year quarter.

WING's full-year Zacks Consensus Estimates are calling for earnings of $2.17 per share and revenue of $434.77 million. These results would represent year-over-year changes of +17.3% and +21.61%, respectively.

Any recent changes to analyst estimates for Wingstop should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.2% higher within the past month. Wingstop is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Wingstop is currently trading at a Forward P/E ratio of 83.42. Its industry sports an average Forward P/E of 20.67, so we one might conclude that Wingstop is trading at a premium comparatively.

We can also see that WING currently has a PEG ratio of 4.17. 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. The Retail - Restaurants was holding an average PEG ratio of 1.66 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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