NASDAQ:WING: a strong growth stock preparing for the next leg up?.

Last update: Jan 7, 2025

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.

Assessing Growth Metrics for NASDAQ:WING

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:WING has earned a 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.
WING shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.28% yearly.
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!
Based on estimates for the next years, WING will show a very strong growth in Earnings Per Share. The EPS will grow by 28.43% on average per year.
The Revenue is expected to grow by 22.66% on average over the next years. This is a very strong growth

Assessing Health for NASDAQ:WING

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:WING has earned a 6 out of 10:

An Altman-Z score of 6.55 indicates that WING is not in any danger for bankruptcy at the moment.
WING's Altman-Z score of 6.55 is amongst the best of the industry. WING outperforms 90.77% of its industry peers.
With a decent Debt to FCF ratio value of 5.11, WING is doing good in the industry, outperforming 73.85% of the companies in the same industry.
With a decent Current ratio value of 1.40, WING is doing good in the industry, outperforming 66.92% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.40, WING is in the better half of the industry, outperforming 70.77% of the companies in the same industry.

Profitability Insights: 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 8 out of 10:

WING has a better Return On Assets (20.79%) than 97.69% of its industry peers.
WING's Return On Invested Capital of 31.79% is amongst the best of the industry. WING outperforms 96.15% of its industry peers.
WING had an Average Return On Invested Capital over the past 3 years of 24.61%. This is significantly above the industry average of 10.64%.
The last Return On Invested Capital (31.79%) for WING is above the 3 year average (24.61%), which is a sign of increasing profitability.
The Profit Margin of WING (17.05%) is better than 91.54% of its industry peers.
The Operating Margin of WING (26.11%) is better than 90.77% of its industry peers.
Looking at the Gross Margin, with a value of 85.11%, WING belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Gross Margin of WING has grown nicely.

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 7 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is bad, WING does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 298.02. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 290.15, a Stop Loss order could be placed below this zone.

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

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 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.