Wingstop (WING, $148.91) tops earnings expectations, raises dividend
Wingstop reported second-quarter earnings that surpassed analysts’ expectations.
The restaurant chain specializing in chicken wings raked in earnings of 39 cents a share, from 17 cents in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings per share of 30 cents.
The company’s revenue increased +36% year-over-year to $66.1 million, compared to FactSet analyst consensus of $62.5 million.
"We benefited from a steadfast focus on expanding our digital business and leveraging delivery to make it seamless for fans to access … wings, fries and sides," Chief Executive Charlie Morrison said in a statement.
Wingstop announced its dividend of 14 cents a share, +27% higher than the 11 cents last quarter. The dividend is payable Sept. 11 to holders of record Aug. 28.
According to Tickeron, WING in Uptrend: price expected to rise as it breaks its lower Bollinger Band on July 13, 2020
This price move signals that WING may jump back above the lower band and head toward the middle band. Traders may consider buying the ticker or exploring call options. In 26 of 28 cases where WING's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 90%.
Current price $148.91 is above $139.92 the highest resistance line found by A.I. Throughout the month of 06/25/20 - 07/28/20, the price experienced a -4% Downtrend. During the week of 07/21/20 - 07/28/20, the stock fell -1%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 37 of 48 cases where WING's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 77%.
The Momentum Indicator exceeded the 0 level on July 27, 2020. Traders may consider buying the ticker or exploring call options. In 75 of 88 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 85%.
The Aroon Indicator entered an Uptrend today. In 231 of 287 similar cases where WING Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 80%.
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 31 of 48 cases where WING's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 65%.
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 29 of 50 cases where WING's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 58%.
Following a 3-day Decline, the ticker is projected to fall further. Considering data from situations where WING declined for three days, in 172 of 283 cases, the price rose further within the following month. The odds of a continued Downtrend are 61%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 68%. During the last month, the daily ratio of advancing to declining volumes was 1.84 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 11 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. WING’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: WING's P/B Ratio (-19.43) is slightly lower than the industry average of (2.70). P/E Ratio (180.25) is within average values for comparable stocks, (122.18). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (6.63). Dividend Yield (0.46) settles around the average of (1.21) among similar stocks. WING's P/S Ratio (11.14) is very high in comparison to the industry average of (1.49).
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
