Wingstop (WING) Laps the Stock Market: Here's Why

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Wingstop (WING) closed at $295.82 in the latest trading session, marking a +1.13% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.92%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.03%.

Shares of the restaurant chain have appreciated by 1.87% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.85% and outperforming the S&P 500's gain of 0.81%.

The investment community will be closely monitoring the performance of Wingstop in its forthcoming earnings report. The company is scheduled to release its earnings on February 19, 2025. The company is forecasted to report an EPS of $0.86, showcasing a 34.38% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $164.75 million, up 29.66% from the prior-year quarter.

Any recent changes to analyst estimates for Wingstop should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.18% lower. Wingstop is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Wingstop is presently trading at a Forward P/E ratio of 67.14. This valuation marks a premium compared to its industry's average Forward P/E of 24.11.

It's also important to note that WING currently trades at a PEG ratio of 2.3. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.11.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.