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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether WINGSTOP INC (NASDAQ:WING) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but WINGSTOP INC has surfaced on our radar for growth with base formation, warranting further examination.

Evaluating Growth: WING

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. WING has achieved a 9 out of 10:

• The Earnings Per Share has grown by an impressive 48.19% over the past year.
• WING shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.27% yearly.
• Looking at the last year, WING shows a very strong growth in Revenue. The Revenue has grown by 36.03%.
• Measured over the past years, WING shows a very strong growth in Revenue. The Revenue has been growing by 25.66% on average per year.
• WING is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.42% yearly.
• WING is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.56% yearly.

Understanding WING's Health

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. WING has earned a 7 out of 10:

• WING has an Altman-Z score of 3.61. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.61, WING belongs to the top of the industry, outperforming 83.09% of the companies in the same industry.
• WING has a Current Ratio of 4.52. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
• WING has a Current ratio of 4.52. This is amongst the best in the industry. WING outperforms 97.79% of its industry peers.
• WING has a Quick Ratio of 4.52. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
• WING has a Quick ratio of 4.52. This is amongst the best in the industry. WING outperforms 97.79% of its industry peers.

What does the Profitability looks like for 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. WING was assigned a score of 8 for profitability:

• WING has a Return On Assets of 15.18%. This is amongst the best in the industry. WING outperforms 93.38% of its industry peers.
• WING has a Return On Invested Capital of 19.64%. This is amongst the best in the industry. WING outperforms 93.38% 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 15.76%.
• WING's Profit Margin of 17.37% is amongst the best of the industry. WING outperforms 89.71% of its industry peers.
• In the last couple of years the Profit Margin of WING has grown nicely.
• WING has a better Operating Margin (26.62%) than 92.65% of its industry peers.
• In the last couple of years the Operating Margin of WING has grown nicely.
• With an excellent Gross Margin value of 85.36%, WING belongs to the best of the industry, outperforming 98.53% 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 WING

ChartMill also 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, WING has a 7 as its setup rating:

Although the technical rating is bad, WING does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 235.93. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

Disclaimer

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.