A 5-Day Winning Streak Has Wingstop Stock Up 25%

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Wingstop (WING) stock is on a 5-day winning streak, up 25.3% since the run began. That added about $819 million to the company’s market value, which now stands at about $4.1 billion. The stock closed at $149.73 on Friday, October 30, 47.0% below its 52-week high of $282.76 and 53.0% above its low of $97.84.

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WING Versus The S&P 500

Returns for WING and the S&P 500 over the streak and the periods around it, all ending Friday, October 30 and including dividends:
 

Return Period WING S&P 500
1 Day 3.0% -1.8%
5 Days (Current Streak) 25.3% -0.6%
1 Month (21 Trading Days) 43.5% -1.1%
3 Months (63 Trading Days) 15.2% 0.0%
Year To Date -36.8% 11.8%
1 Year (252 Trading Days) -37.8% 11.3%

How The Streak Compares With The Market

The market explains little of this: the S&P 500 lost 0.6% over the same 5 sessions, including dividends, against Wingstop’s +25.3%. Over the past three months the stock is up 15.2%, a window that includes the streak; over the other 58 sessions of that window it was down 8.1%.

Do The Fundamentals Support The Run?

On the fundamentals, revenue grew 6.9% over the last twelve months, against a median of 7.4% for S&P 500 Consumer Discretionary stocks; its operating margin is 27.7%, versus a median of 14.9%; and the stock trades at 34.7 times trailing earnings against a median of 19.3. The numbers make the run harder to justify: revenue growth below the median and a multiple well above the median. At this price, the stock is asking a lot of the business.

A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.

One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy

A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?

The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.