Why NASDAQ:WING Is a Standout High-Growth Stock in a Consolidation Phase.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether WINGSTOP INC (NASDAQ:WING) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but WINGSTOP INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for NASDAQ:WING

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:WING was assigned a score of 8 for growth:

• WING shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.54%, which is quite impressive.
• 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 34.86% in the past year. This is a very strong growth!
• The Revenue has been growing by 21.81% on average over the past years. This is a very strong growth!
• WING is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.26% yearly.
• The Revenue is expected to grow by 19.50% on average over the next years. This is quite good.

Understanding NASDAQ:WING's Health Score

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:WING, the assigned 6 for health provides valuable insights:

• WING has an Altman-Z score of 5.92. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
• WING has a Altman-Z score of 5.92. This is amongst the best in the industry. WING outperforms 94.89% of its industry peers.
• WING's Debt to FCF ratio of 9.68 is fine compared to the rest of the industry. WING outperforms 62.77% of its industry peers.
• Looking at the Current ratio, with a value of 1.97, WING belongs to the top of the industry, outperforming 85.40% of the companies in the same industry.
• WING has a Quick ratio of 1.97. This is amongst the best in the industry. WING outperforms 86.86% of its industry peers.

What does the Profitability looks like for NASDAQ:WING

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:WING, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 19.62%, WING belongs to the top of the industry, outperforming 95.62% of the companies in the same industry.
• WING has a better Return On Invested Capital (30.77%) than 96.35% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for WING is significantly above the industry average of 10.04%.
• The 3 year average ROIC (23.13%) for WING is below the current ROIC(30.77%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 15.76%, WING belongs to the top of the industry, outperforming 89.78% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 26.86%, WING belongs to the top of the industry, outperforming 91.97% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 84.45%, WING belongs to the top of the industry, outperforming 95.62% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:WING?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:WING is 7:

Besides having an excellent technical rating, WING also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 245.67, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of WING contains the most current fundamental analsysis.

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.