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

In this article, we'll take a closer look at WINGSTOP INC (NASDAQ:WING) as a potential candidate for growth investing. While it's important for investors to conduct their own research, WINGSTOP INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Understanding NASDAQ:WING's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:WING boasts a 9 out of 10:

• 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.
• The Earnings Per Share has been growing by 24.28% on average over the past years. This is a very strong growth
• WING shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.97%.
• WING shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.60% yearly.
• The Earnings Per Share is expected to grow by 28.69% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 22.68% on average over the next years. This is a very strong growth

Deciphering NASDAQ:WING's Health Rating

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:

• WING has an Altman-Z score of 6.89. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
• WING's Altman-Z score of 6.89 is amongst the best of the industry. WING outperforms 90.84% of its industry peers.
• WING has a Debt to FCF ratio of 5.11. This is in the better half of the industry: WING outperforms 75.57% of its industry peers.
• WING has a Current ratio of 1.40. This is in the better half of the industry: WING outperforms 66.41% of its industry peers.
• The Quick ratio of WING (1.40) is better than 70.99% of its industry peers.

Exploring NASDAQ:WING's Profitability

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 20.79%, WING belongs to the top of the industry, outperforming 97.71% of the companies in the same industry.
• WING's Return On Invested Capital of 31.79% is amongst the best of the industry. WING outperforms 96.18% 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 3 year average ROIC (24.61%) for WING is below the current ROIC(31.79%), indicating increased profibility in the last year.
• WING's Profit Margin of 17.05% is amongst the best of the industry. WING outperforms 90.84% of its industry peers.
• WING has a better Operating Margin (26.11%) than 90.84% of its industry peers.
• With an excellent Gross Margin value of 85.11%, WING belongs to the best of the industry, outperforming 98.47% 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

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:WING has a 7 as its setup rating:

Although the technical rating is bad, WING does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 308.49. Right above this resistance zone may be a good entry point. Another positive sign is the recent Pocket Pivot signal.

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.