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Why Wingstop (WING) Outpaced the Stock Market Today

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Wingstop (WING - Free Report) closed the most recent trading day at $422.95, moving +0.49% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.08%.

Shares of the restaurant chain witnessed a gain of 12.87% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.59% and the S&P 500's gain of 1.21%.

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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.78 per share and revenue of $626.83 million. These totals would mark changes of +52.42% and +36.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.75% higher. Wingstop is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Wingstop is currently being traded at a Forward P/E ratio of 111.38. This expresses a premium compared to the average Forward P/E of 22.36 of its industry.

Also, we should mention that WING has a PEG ratio of 4.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Restaurants industry stood at 2.15 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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