Shares of food delivery expert Grubhub Inc (NYSE:GRUB) and restaurant issue Wingstop Inc (NASDAQ:WING) have performed well over the past year, and analysts this morning are upwardly revising their outlooks. Below is a closer look at the bullish brokerage notes and how GRUB and WING stocks have been performing on the charts.
Grubhub stock hit a record high of $77.99 back on Jan. 29, but has since pulled back to trade at $68.16. At these levels the shares are still up almost 67% over the past year and yesterday they found support near the 80-day moving average, which also contained pullbacks in September and October.
Meanwhile, Stifel this morning boosted its price target to $75 from $63, echoing the mostly upbeat opinion on Wall Street. That is, 12 of the 20 brokerage firms tracking GRUB rate it a "strong buy" or "buy." But if the company impresses when it announces earnings before the open on Thursday, Feb. 8, more bullish attention could come through -- especially with the average 12-month price target sitting right overhead at $70.04.
Well-received earnings could also force more short sellers to cover their positions. For example, short interest accounts for 28% of the stock's float, and it would take these bears more than two weeks to cover their positions, going by the average daily volume.
Wingstop stock recently hit a record high, too, peaking at $49.69 on Jan. 31. The shares were last seen trading at $47.73, giving them a year-to-date lead of over 22%. Cowen sees more upside ahead, lifting its price target to $51 from $46.
Taking a broader view, there are 14 analysts covering WING, and eight of them say it's a "buy" or "strong buy." Moreover, the average 12-month price target of $46.25 sits below current levels. So given the equity's technical strength, there's potential for more bullish brokerage notes in the future. The company is scheduled to report earnings on Thursday, Feb. 22.
Wingstop is also heavily shorted. Short interest represents 23.7% of the stock's float, and it would take short sellers almost 11 days to buy back their shares. Like Grubhub, WING could benefit from a short-squeeze situation, especially if earnings impress.