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Wingstop (WING) Advances While Market Declines: Some Information for Investors

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In the latest market close, Wingstop (WING - Free Report) reached $366.20, with a +0.72% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.78%. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 0.7%.

Prior to today's trading, shares of the restaurant chain had lost 15.22% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.58% and the S&P 500's gain of 2.14% in that time.

The upcoming earnings release of Wingstop will be of great interest to investors. The company's earnings report is expected on July 31, 2024. In that report, analysts expect Wingstop to post earnings of $0.80 per share. This would mark year-over-year growth of 40.35%. At the same time, our most recent consensus estimate is projecting a revenue of $141.72 million, reflecting a 32.23% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.46 per share and a revenue of $591.05 million, signifying shifts of +39.52% and +28.47%, respectively, from the last year.

Any recent changes to analyst estimates for Wingstop should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.62% higher within the past month. Right now, Wingstop possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Wingstop is currently trading at a Forward P/E ratio of 105.24. For comparison, its industry has an average Forward P/E of 18.8, which means Wingstop is trading at a premium to the group.

It's also important to note that WING currently trades at a PEG ratio of 4.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry had an average PEG ratio of 1.9 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.


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