Should You Buy Wingstop Stock Before Its July 29 Earnings Report?
Wingstop (NASDAQ: WING) is down significantly from its all-time high, with shares off 43.5% year to date as of July 23 and a current price of $135.20. Analysts expect the company to report earnings per share (EPS) of $1.02 on revenue of $190.2 million ahead of its upcoming July 29 earnings release. However, with inflation affecting consumer discretionary spending and Wingstop's core customer base under stress, there is uncertainty around whether these estimates will be met or exceeded. DA Davidson recently cut its price target for the stock to $200 from $230 while maintaining a buy rating, citing weaker-than-expected same-store sales forecasts. Meanwhile, Piper Sandler and Guggenheim see potential upside if Wingstop can return to steady growth in key areas like Smart Kitchens and Club Wingstop loyalty program. Despite the stock's decline creating what some analysts view as an attractive risk/reward scenario for investors with a high tolerance for volatility, there is no margin for error given current economic conditions. The company must deliver strong results or guidance to avoid further declines.
Tickers: $WING
Topics: consumer discretionary fast food inflation impact stock performance