Headquartered in Texas, Wingstop (WING) offers cooked-to-order, hand-sauced, tossed chicken wings, and other similar food items. Currently, the stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across the board.
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Aside from the improved earnings outlook, let’s look at several other aspects of WING shares.
Current Standing
WING is a solid consideration for any growth-focused investor; estimates for its current fiscal year (FY23) reflect 15% earnings growth on 20% higher revenues. Peering ahead to FY24, earnings and revenue are forecasted to witness growth of 16% and 14%, respectively.
Wingstop carries a Style Score of “A” for Growth. As we can see in the chart below, the company has enjoyed an acceleration in revenue.
Image Source: Zacks Investment Research
Still, the stock may not entice those focusing on value, with the present 14.1X forward price-to-sales sitting on the high end of the spectrum. Still, investors have had little issue forking up the premium given the company’s growth, with WING shares up 40% year-to-date and crushing the S&P 500’s impressive 16% gain.
The stock carries a Style Score of “F” for Value.
Image Source: Zacks Investment Research
It’s worth watching for the company’s next quarterly release expected on July 27th; the Zacks Consensus EPS Estimate of $0.50 suggests an 11% improvement in earnings from the year-ago period. Analysts have been bullish, with the quarterly estimate being revised 11% higher since April of this year.
Image Source: Zacks Investment Research
In addition, our consensus revenue estimate for the upcoming quarter to be reported stands at $104.3 million, 25% higher than the year-ago quarter. The quarterly sales estimate has also enjoyed positive revisions, up 4% since April.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Wingstop (WING) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
— Derek Lewis
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Source: Zacks