Why the Market Dipped But Wingstop (WING) Gained Today
Wingstop (WING) closed the latest trading day at $279.20, indicating a +0.08% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.06%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Coming into today, shares of the restaurant chain had gained 8.73% in the past month. In that same time, the Retail-Wholesale sector gained 1.86%, while the S&P 500 gained 3.36%.
The upcoming earnings release of Wingstop will be of great interest to investors. The company's earnings report is expected on February 21, 2024. It is anticipated that the company will report an EPS of $0.57, marking a 5% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $119.52 million, indicating a 13.97% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.52% higher. Wingstop presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Wingstop is presently trading at a Forward P/E ratio of 96.9. Its industry sports an average Forward P/E of 21.23, so one might conclude that Wingstop is trading at a premium comparatively.
Meanwhile, WING's PEG ratio is currently 4.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.84.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 37% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Wingstop Inc. (WING) : Free Stock Analysis Report
