Q2 STOCKS TO BUY

Wingstop Stock Takes Flight After Upgrade

WING has found support at its 160-day trendline

Managing Editor
Dec 28, 2018 at 9:35 AM
facebook X logo linkedin


The shares of Wingstop Inc (NASDAQ:WING) are up 2.3% this morning at $62, after Wedbush upgraded the restaurant chain to "outperform" from "neutral" while trimming its price target to $69 from $71. The analyst in coverage waxed bullishly on the company's valuation, and sees room for upside to its 2019 earnings per share and margins.

Since early 2017, Wingstop stock has essentially been carving out a channel of higher highs, culminating in an all-time Oct. 17 peak of $72. WING subsequently pulled back with the broader market, though, and has shed nearly 7% this quarter as of yesterday's close. However, the damage appears to have been contained by the shares' 160-day moving average, a trendline that was support for a similar pullback in August. Year-to-date, the stock still boasts a 74% gain.

A short squeeze could add some wind to WING's sails. Short interest fell by 5% in the last two reporting periods, yet the 3.82 million shares sold short still represents a healthy 13.2% of the equity's total available float. At its average pace of trading, it would take shorts more than eight days to buy back their bearish bets. 

There is pessimism in the options pits too, it seems. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Wingstop sports a 10-day put/call volume ratio of 4.96, which ranks 4 percentage points from an annual high. This indicates the rate of put buying relative to call buying has been quicker than usual.

Echoing that, WING's Schaeffer's put/call open interest ratio (SOIR) of 1.81 sits in the 80th percentile of its annual range, indicating that near-term traders have rarely been more put-biased in the past 12 months. 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter