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

In this article we will dive into WINGSTOP INC (NASDAQ:WING) as a possible candidate for growth investing. Investors should always do their own research, but we noticed WINGSTOP INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Exploring NASDAQ:WING's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:WING has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 35.33% over the past year.
• The Earnings Per Share has been growing by 24.28% on average over the past years. This is a very strong growth
• The Revenue has grown by 28.65% in the past year. This is a very strong growth!
• The Revenue has been growing by 24.60% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, WING will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.30% 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 17.37% on average per year.

A Closer Look at Health for NASDAQ:WING

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 7 for health provides valuable insights:

• An Altman-Z score of 8.39 indicates that WING is not in any danger for bankruptcy at the moment.
• WING has a Altman-Z score of 8.39. This is amongst the best in the industry. WING outperforms 97.76% of its industry peers.
• With a decent Debt to FCF ratio value of 8.82, WING is doing good in the industry, outperforming 64.18% of the companies in the same industry.
• A Current Ratio of 2.03 indicates that WING has no problem at all paying its short term obligations.
• The Current ratio of WING (2.03) is better than 85.82% of its industry peers.
• A Quick Ratio of 2.03 indicates that WING has no problem at all paying its short term obligations.
• WING's Quick ratio of 2.03 is amongst the best of the industry. WING outperforms 87.31% of its industry peers.

Profitability Analysis for NASDAQ:WING

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:WING was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 18.58%, WING belongs to the best of the industry, outperforming 96.27% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 28.97%, WING belongs to the best of the industry, outperforming 96.27% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for WING is significantly above the industry average of 10.25%.
• The 3 year average ROIC (24.61%) for WING is below the current ROIC(28.97%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 15.26%, WING belongs to the top of the industry, outperforming 87.31% of the companies in the same industry.
• The Operating Margin of WING (25.63%) is better than 91.79% of its industry peers.
• WING has a Gross Margin of 84.64%. This is amongst the best in the industry. WING outperforms 95.52% of its industry peers.
• WING's Gross Margin has improved in the last couple of years.

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:

WING has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price.

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

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.