Wingstop (WING) ended the recent trading session at $142.23, demonstrating a -1.56% change from the preceding day's closing price. This change was narrower than the S&P 500's 2.65% loss on the day. Meanwhile, the Dow lost 1.35%, and the Nasdaq, a tech-heavy index, lost 4.18%.
Heading into today, shares of the restaurant chain had gained 7.12% over the past month, outpacing the Retail-Wholesale sector's loss of 5.69% and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Wingstop in its upcoming release. It is anticipated that the company will report an EPS of $1.02, marking a 2% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $190.27 million, up 9.14% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.59 per share and a revenue of $776.76 million, signifying shifts of +12.5% and +11.47%, respectively, from the last year.
Any recent changes to analyst estimates for Wingstop should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. Wingstop presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Wingstop is currently exchanging hands at a Forward P/E ratio of 31.47. This denotes a premium relative to the industry average Forward P/E of 19.88.
Also, we should mention that WING has a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.77.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 15% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Wingstop Inc. (WING): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).