Wingstop Inc. (WING)

Wingstop stock forecast: buy or sell

Wingstop stock outlook

  • Wingstop closed yesterday at $137.54 after barely moving a -0.47%.
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $44.23. Up to date, price marked a 210.97% gain since the beginning of this rally
  • Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name.
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Important note:
The thoughts published in this post are personal and not recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the individual positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for informational purposes only

Wingstop stock chart overview

Should I buy Wingstop stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is WING stock a buy?

Currently, Wingstop stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for WING in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Wingstop stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our personal moods or the buzz surrounding the market. Our trading system selects very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies are not intended for shorting Wingstop stock

A golden rule is that you must never keep a trade that yields losses greater than those expected upon purchase. When to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Wingstop stock?

In the current situation of Wingstop there is not any eligible sell setup, so Wingstop stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Wingstop stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days we couldn't find any rating for Wingstop

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Technical analysis

Wingstop shares started an uptrend in mid-March, and gained a gorgeous 210.97%. The price line shows rising peaks and troughs, and along the way gave very few buy points for those who wanted to trade in. Latest low was in early June, when price bounced at $113.03. Currently, the price trades in a consolidation between its last top ($146.13) and its last bottom ($113.03)

SMAs overview

Moving averages are tools for investors to detect market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances to spot price points in the stock price action that tend to work as barriers, preventing the price of shares to move in certain direction. Supports are levels where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue declining until finding another support level. On the contrary, a resistance level is where the price may find a curb as it moves up. In the same way, the price is more likely to "bounce off" at this level, and if it finally breaches this level, the price will climb more easily until it hits the next resistance

The current resistance levels are:

  • R1: $146.13 (6.25% above)
  • The current support levels are:

  • S1: $130.87 (-4.85% below)
  • S2: $113.03 (-17.82% below)
  • S3: $106.93 (-22.26% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technique designed by John Bollinger. It is composed of 3 bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on July 1, the price corrected downwards by 4.76%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 on July 2 after just crossing to the overbough zone for just one day (weak signal). The RSI value yesterday was 58.52. Since that level was lost, Wingstop stock dropped a 4.01%

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    Earnings and financials

    Wingstop Inc. (WING) reported adjusted EPS for the fiscal 1st-quarter that enhanced analysts' expectations. Quarterly EPS was $0.27 per share from an estimated $0.24. This quarterly report represents an earnings surprise of 12.5%. On the contrary, reported sales were $55.4 million, aligned with analysts' forecasts.

    This compares to earnings of $0.22 per share a year ago, so reported EPS is a gain of 22.73%. Revenue exploded a 15.38% on an annualized basis in the 1st-quarter, from $48.1M to $55.4M last quarter. Wingstop reported 3 year over year quarterly results in green, improving turnover by 124.73% from $24.7M on 2017-Q2.

    Wingstop is presenting quarterly financial report on late next July. Wall Street expects a per-share earnings of %s of $0.28, compared to previous quarter that made $0.27. Earnings reporting day has an additional risk for traders as the results posted can soar and sink the shares price with very low liquidity and not honouring your buy/stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.

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