Why Wingstop (WING) Dipped More Than Broader Market Today
In the latest market close, Wingstop (WING) reached $243.20, with a -0.6% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 0.56%.
The the stock of restaurant chain has fallen by 0.97% in the past month, lagging the Retail-Wholesale sector's gain of 3.02% and the S&P 500's gain of 2.56%.
Analysts and investors alike will be keeping a close eye on the performance of Wingstop in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.56, signifying a 6.67% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $118.5 million, up 12.99% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Wingstop. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.32% higher. Currently, Wingstop is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Wingstop is presently being traded at a Forward P/E ratio of 86.24. This valuation marks a premium compared to its industry's average Forward P/E of 19.74.
We can additionally observe that WING currently boasts a PEG ratio of 3.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.7.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Wingstop Inc. (WING) : Free Stock Analysis Report
