Exploring the Growth Potential of NASDAQ:WING as It Nears a Breakout.

Exploring Growth Potential: WINGSTOP INC (NASDAQ:WING) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and WINGSTOP INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected WINGSTOP INC on our screen for growth with base formation, suggesting it merits a closer look.

ChartMill's Evaluation of Growth

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 9 for growth:

• WING shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
• Measured over the past years, WING shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.28% on average per year.
• The Revenue has grown by 34.97% 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!
• WING is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.63% yearly.
• The Revenue is expected to grow by 18.58% on average over the next years. This is quite good.

How We Gauge Health 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 6 out of 10:

• An Altman-Z score of 7.27 indicates that WING is not in any danger for bankruptcy at the moment.
• WING's Altman-Z score of 7.27 is amongst the best of the industry. WING outperforms 92.54% of its industry peers.
• The Debt to FCF ratio of WING (5.11) is better than 74.63% of its industry peers.
• WING has a Current ratio of 1.40. This is in the better half of the industry: WING outperforms 66.42% of its industry peers.
• Looking at the Quick ratio, with a value of 1.40, WING is in the better half of the industry, outperforming 71.64% of the companies in the same industry.

Looking at the Profitability

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 8 out of 10:

• WING's Return On Assets of 20.79% is amongst the best of the industry. WING outperforms 97.76% of its industry peers.
• WING has a Return On Invested Capital of 31.79%. This is amongst the best in the industry. WING outperforms 96.27% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for WING is significantly above the industry average of 10.51%.
• The 3 year average ROIC (24.61%) for WING is below the current ROIC(31.79%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 17.05%, WING belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 26.11%, WING belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
• WING's Gross Margin of 85.11% is amongst the best of the industry. WING outperforms 97.76% of its industry peers.
• In the last couple of years the Gross Margin of WING has grown nicely.

How do we evaluate the setup for NASDAQ:WING?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:WING scores a 7 out of 10:

Although the technical rating is bad, WING does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. We notice that large players showed an interest for WING in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.