Why the Market Dipped But Wingstop (WING) Gained Today

Zacks
09 Apr

In the latest market close, Wingstop (WING) reached $221.71, with a +0.32% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 0.84%, and the Nasdaq, a tech-heavy index, lost 2.15%.

The restaurant chain's shares have seen an increase of 3.38% over the last month, surpassing the Retail-Wholesale sector's loss of 11.13% and the S&P 500's loss of 12.16%.

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 April 30, 2025. In that report, analysts expect Wingstop to post earnings of $0.84 per share. This would mark a year-over-year decline of 14.29%. In the meantime, our current consensus estimate forecasts the revenue to be $171.18 million, indicating a 17.42% growth compared to the corresponding quarter of the prior year.

WING's full-year Zacks Consensus Estimates are calling for earnings of $3.66 per share and revenue of $732.06 million. These results would represent year-over-year changes of 0% and +16.98%, respectively.

Investors should also note any recent changes to analyst estimates for Wingstop. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Wingstop is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Wingstop currently has a Forward P/E ratio of 60.37. This represents a premium compared to its industry's average Forward P/E of 20.95.

Also, we should mention that WING has a PEG ratio of 3.52. 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. The Retail - Restaurants was holding an average PEG ratio of 1.96 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WING in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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