Wingstop WING shares rallied 6.9% in the last trading session to close at $137.65. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.5% loss over the past four weeks.
Wingstop’s rally is largely driven by optimism regarding the company’s pent-up consumer demand, momentum in international business and restaurant development initiatives. Also, attributes such as new menu introductions and technological enhancements bodes well.
This restaurant chain is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +20.7%. Revenues are expected to be $89.93 million, up 36.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Wingstop, the consensus EPS estimate for the quarter has been revised 1.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WING going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Wingstop is a member of the Zacks Retail - Restaurants industry. One other stock in the same industry, Wendy's (WEN), finished the last trading session 0.5% higher at $19.56. WEN has returned 2.4% over the past month.
Wendy's' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. Compared to the company's year-ago EPS, this represents a change of +21.1%. Wendy's currently boasts a Zacks Rank of #2 (Buy).
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