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Why NASDAQ:WING Is a Promising High-Growth Stock in the Midst of Consolidation.

By Mill Chart

Last update: Oct 12, 2023

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether WINGSTOP INC (NASDAQ:WING) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but WINGSTOP INC has surfaced on our radar for growth with base formation, warranting further examination.

Growth Analysis for NASDAQ:WING

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:WING scores a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 67.42% over the past year.
  • The Earnings Per Share has been growing by 19.98% on average over the past years. This is quite good.
  • The Revenue has grown by 38.83% in the past year. This is a very strong growth!
  • Measured over the past years, WING shows a very strong growth in Revenue. The Revenue has been growing by 21.81% on average per year.
  • Based on estimates for the next years, WING will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.32% on average per year.
  • Based on estimates for the next years, WING will show a quite strong growth in Revenue. The Revenue will grow by 15.25% on average per year.

Health Analysis for NASDAQ:WING

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:WING has earned a 7 out of 10:

  • WING has an Altman-Z score of 5.06. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.06, WING belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
  • Looking at the Debt to FCF ratio, with a value of 10.70, WING is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
  • WING has a Current Ratio of 4.05. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 4.05, WING belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
  • WING has a Quick Ratio of 4.05. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
  • WING's Quick ratio of 4.05 is amongst the best of the industry. WING outperforms 98.57% of its industry peers.

What does the Profitability looks like for NASDAQ:WING

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:WING has earned a 7 out of 10:

  • Looking at the Return On Assets, with a value of 13.92%, WING belongs to the top of the industry, outperforming 93.57% of the companies in the same industry.
  • WING has a better Return On Invested Capital (20.83%) than 94.29% of its industry peers.
  • WING had an Average Return On Invested Capital over the past 3 years of 23.12%. This is significantly above the industry average of 10.37%.
  • The Profit Margin of WING (15.19%) is better than 90.00% of its industry peers.
  • The Operating Margin of WING (26.57%) is better than 92.14% of its industry peers.
  • With an excellent Gross Margin value of 84.00%, WING belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.

How does the Setup look for NASDAQ:WING

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:WING exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, WING also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 177.02, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of WING for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of WING

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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