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

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In the latest market close, Wingstop (WING - Free Report) reached $395, with a -1.93% movement compared to the previous day. This change lagged the S&P 500's 0.21% loss on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.05%.

The restaurant chain's stock has climbed by 2.98% in the past month, falling short of the Retail-Wholesale sector's gain of 7.41% and the S&P 500's gain of 5.94%.

The investment community will be closely monitoring the performance of Wingstop in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. On that day, Wingstop is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 40.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $161.56 million, up 37.97% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $627.49 million, indicating changes of +52.82% and +36.4%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wingstop. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.45% higher. Right now, Wingstop possesses a Zacks Rank of #2 (Buy).

With respect to valuation, Wingstop is currently being traded at a Forward P/E ratio of 106.31. This indicates a premium in contrast to its industry's Forward P/E of 21.09.

It's also important to note that WING currently trades at a PEG ratio of 4.01. 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 Retail - Restaurants industry had an average PEG ratio of 2.09 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 38% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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