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Wingstop (WING) Laps the Stock Market: Here's Why

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The most recent trading session ended with Wingstop (WING - Free Report) standing at $426.46, reflecting a +0.93% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.4% gain on the day. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.

Coming into today, shares of the restaurant chain had gained 8.84% in the past month. In that same time, the Retail-Wholesale sector gained 5.71%, while the S&P 500 gained 1.71%.

Investors will be eagerly watching for the performance of Wingstop in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. The company is predicted to post an EPS of $0.96, indicating a 39.13% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $161.3 million, reflecting a 37.74% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.78 per share and revenue of $626.83 million, which would represent changes of +52.42% and +36.25%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.75% higher. Wingstop currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Wingstop is presently trading at a Forward P/E ratio of 111.82. This expresses a premium compared to the average Forward P/E of 20.7 of its industry.

We can also see that WING currently has a PEG ratio of 4.22. 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 currently had an average PEG ratio of 2.22 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 178, which puts it in the bottom 30% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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