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Why the Market Dipped But Wingstop (WING) Gained Today

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The most recent trading session ended with Wingstop (WING - Free Report) standing at $273.49, reflecting a +0.66% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.59%.

The the stock of restaurant chain has risen by 6.76% in the past month, leading the Retail-Wholesale sector's gain of 1.08% and the S&P 500's gain of 1.2%.

The upcoming earnings release of Wingstop will be of great interest to investors. The company is expected to report EPS of $0.56, down 6.67% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $118.57 million, indicating a 13.06% growth compared to the corresponding quarter of the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wingstop. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.38% higher within the past month. At present, Wingstop boasts a Zacks Rank of #2 (Buy).

Digging into valuation, Wingstop currently has a Forward P/E ratio of 95.1. This denotes a premium relative to the industry's average Forward P/E of 17.74.

We can additionally observe that WING currently boasts a PEG ratio of 4.36. 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. The Retail - Restaurants industry had an average PEG ratio of 1.68 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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