Wingstop (WING) Falls More Steeply Than Broader Market: What Investors Need to Know
Wingstop (WING) closed the latest trading day at $373.56, indicating a -1.15% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.02%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.04%.
Shares of the restaurant chain have depreciated by 8.43% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.68% and the S&P 500's gain of 3.77%.
The upcoming earnings release of Wingstop will be of great interest to investors. The company's earnings report is expected on October 30, 2024. The company is forecasted to report an EPS of $0.97, showcasing a 40.58% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $161.85 million, up 38.22% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.79 per share and revenue of $628.07 million. These totals would mark changes of +52.82% and +36.52%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wingstop. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 0.34% higher. Currently, Wingstop is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Wingstop is holding a Forward P/E ratio of 99.65. This valuation marks a premium compared to its industry's average Forward P/E of 23.63.
Meanwhile, WING's PEG ratio is currently 3.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 105, positioning it in the top 42% 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.
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