Wingstop Stock Upgraded Amid Outstanding Profits; Earnings On Tap

Wingstop (WING) has made chicken wings popular in 44 states and in other countries as well. On Monday, the Relative Strength (RS) Rating for Wingstop stock got a big upgrade, jumping from 79 to 89, topping a milestone along the way. The popular chicken wings chain is slated to report third quarter earnings Wednesday.

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The upgraded 89 RS Rating shows that Wingstop stock beat all but 11% of all stocks for price performance this past year.

Over 100 years of market history shows that stocks that go on to make the biggest gains typically have an RS Rating above 80 in the early stages of their moves. Wingstop stock crashed through that barrier. The restaurant chain sells large bone-in and boneless chicken wings with a variety of sauces, drinks and sides such as French fries.

Wingstop Stock Soared 160% In Last 1-1/2 Years

Among its other ratings Wingstop stock has a near-best 98 Earnings Per Share Rating, out of a best-possible 99. Its Composite Rating is 82 and its Accumulation/Distribution Rating is C- on an A+ to E scale, indicating big funds are selling slightly more of its shares than buying.

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Wingstop stock fell to a 67.67 low on May 24 last year during the bear market. On Monday the restaurant chain rose fractionally to above 178, up 160% from the May 2022 low. It’s working on a consolidation with a 223.77 buy point. See if it can break out in volume at least 40% above average.

Meanwhile, on Aug. 2, Wingstop reported 27% EPS growth to 57 cents on a 28% hike in sales to $107.2 million. That capped an outstanding year for the Addison, Texas-based company, near Dallas.

The prior three quarters its EPS rose 55%, 150% and 79%. Those came on revenue increases of 41%, 46% and 43%. See if Wingstop can return to oversize earnings and sales growth in its next report. The company plans to report third quarter earnings and sales numbers on Wednesday morning.

No. 2 In Large Restaurants Group

Wingstop stock holds the No. 2 rank among its peers in the 54-stock Retail-Restaurants industry group, according to IBD Stock Checkup. Chipotle Mexican Grill (CMG) is No. 1 and China-based Yum China Holdings (YUMC) is No. 3 among the group’s highest-rated stocks.

As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.

IBD’s proprietary rating identifies price action with a 1 (worst) to 99 (best) score. The rating shows how a stock’s price movement over the trailing 52 weeks holds up against all the other stocks in our database.

Please follow James DeTar on X, formerly known as Twitter, @JimDeTar 

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