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Wingstop (WING) Rises As Market Takes a Dip: Key Facts

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The most recent trading session ended with Wingstop (WING - Free Report) standing at $303.67, reflecting a +1.94% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq lost 1.2%.

Shares of the restaurant chain have depreciated by 0.04% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 7.49% and the S&P 500's gain of 2.71%.

Analysts and investors alike will be keeping a close eye on the performance of Wingstop in its upcoming earnings disclosure. The company's earnings report is set to go public on February 19, 2025. The company's upcoming EPS is projected at $0.86, signifying a 34.38% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $164.43 million, indicating a 29.41% increase compared to the same quarter of the previous year.

It is also important to note the recent changes to analyst estimates for Wingstop. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 3.32% fall in the Zacks Consensus EPS estimate. Wingstop is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Wingstop is currently exchanging hands at a Forward P/E ratio of 69.18. This signifies a premium in comparison to the average Forward P/E of 23.48 for its industry.

Meanwhile, WING's PEG ratio is currently 2.66. 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 average PEG ratio for the Retail - Restaurants industry stood at 2.14 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 30, this industry ranks in the top 12% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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