Here's Why Wingstop (WING) Fell More Than Broader Market
In the latest market close, Wingstop (WING) reached $293.25, with a -0.76% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the restaurant chain had gained 13.1% over the past month, outpacing the Retail-Wholesale sector's gain of 6.89% and the S&P 500's gain of 5.78% in that time.
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 February 21, 2024. In that report, analysts expect Wingstop to post earnings of $0.57 per share. This would mark a year-over-year decline of 5%. Alongside, our most recent consensus estimate is anticipating revenue of $119.52 million, indicating a 13.97% upward movement from the same quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wingstop. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.91% higher within the past month. At present, Wingstop boasts a Zacks Rank of #2 (Buy).
Investors should also note Wingstop's current valuation metrics, including its Forward P/E ratio of 102.89. This denotes a premium relative to the industry's average Forward P/E of 21.11.
One should further note that WING currently holds a PEG ratio of 4.87. 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 average PEG ratio for the Retail - Restaurants industry stood at 1.9 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 174, this industry ranks in the bottom 31% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Wingstop Inc. (WING) : Free Stock Analysis Report
