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Wingstop (WING) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Wingstop (WING - Free Report) closed the most recent trading day at $261.14, moving -2.38% from the previous trading session. This change lagged the S&P 500's 0.13% loss on the day. At the same time, the Dow lost 0.27%, and the tech-heavy Nasdaq lost 0.07%.

The restaurant chain's stock has dropped by 21.23% in the past month, falling short of the Retail-Wholesale sector's gain of 2.5% and the S&P 500's gain of 2.71%.

The investment community will be paying close attention to the earnings performance of Wingstop in its upcoming release. The company is predicted to post an EPS of $0.96, indicating a 9.09% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $187.96 million, indicating a 15.67% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $4 per share and a revenue of $730.28 million, demonstrating changes of +9.29% and +16.69%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Wingstop. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Right now, Wingstop possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Wingstop is presently trading at a Forward P/E ratio of 66.9. This signifies a premium in comparison to the average Forward P/E of 20.14 for its industry.

We can also see that WING currently has a PEG ratio of 3.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. WING's industry had an average PEG ratio of 2.32 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 27% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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