As it hovers near a buy point, Wingstop is Tuesday's pick for IBD 50 Stocks To Watch. Wingstop stock also is carving a handle with an alternative buy point that is also its all-time high.
The company ranks third in the retail restaurants group, with an EPS Rating of 99 from Investor's Business Daily, according to IBD MarketSurge.
Steady sales and earnings growth over the past eight quarters are achievements to note. Sales growth has ranged between 21% and 46% while earnings growth has ranged between 7% and 150%. Year to date, Wingstop stock has gained 62%, based on Monday's closing price.
Wingstop stock fell below its 50-day moving average after second-quarter results on July 31 but recovered to build a consolidation pattern. Its conventional buy point is 431.03, but a handle buy point may be available at of 433.86, the stock's all-time high.
Second-quarter sales grew 45% to $155.7 million while earnings of 93 cents per share was 63% higher than the prior year. Meanwhile, third-quarter earnings are due on Oct. 30.
Wingstop Stock: Double-Digit Growth
Analysts polled by FactSet expect sales growth of 36% or $159.7 million with earnings per share of 95 cents or 37% growth from the prior year.
Wingstop stock analysts also estimate that profits will rise 52% in 2024 with earnings of $3.77 per share while in 2025, they see a 23% increase in profits with earnings of $4.63 per share.
The Composite Rating is 91 while the Relative Strength Rating is 93.
Mutual funds own 70% of outstanding shares. More funds have been net buyers of Wingstop stock over the past three quarters. The Alger Small Cap Growth Fund (ALSCX) and the Federated Hermes Kaufmann Small Cap Fund (FKASX) hold shares of Wingstop.
Wingstop stock also has been under accumulation in recent weeks. It now holds an Accumulation/Distribution Rating of B-.
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