Bull Of The Day: Wingstop Inc.
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Headquartered in Texas, Wingstop (WING - Free Report) 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.
Image Source: Zacks Investment Research
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 - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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