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Wingstop (WING) Suffers a Larger Drop Than the General Market: Key Insights

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Wingstop (WING - Free Report) closed at $182.88 in the latest trading session, marking a -0.94% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the restaurant chain had gained 19.55% over the past month, outpacing the Retail-Wholesale sector's loss of 7.03% and the S&P 500's loss of 5.53% in that time.

The investment community will be paying close attention to the earnings performance of Wingstop in its upcoming release. The company is slated to reveal its earnings on November 1, 2023. In that report, analysts expect Wingstop to post earnings of $0.52 per share. This would mark year-over-year growth of 15.56%. Meanwhile, the latest consensus estimate predicts the revenue to be $108.74 million, indicating a 17.34% increase compared to the same quarter of the previous year.

WING's full-year Zacks Consensus Estimates are calling for earnings of $2.18 per share and revenue of $435.39 million. These results would represent year-over-year changes of +17.84% and +21.78%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wingstop. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.87% higher within the past month. Wingstop presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Wingstop is currently being traded at a Forward P/E ratio of 84.64. This denotes a premium relative to the industry's average Forward P/E of 19.29.

One should further note that WING currently holds a PEG ratio of 4.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.66.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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