The stock market correction hasn’t gone on very long, but there are more than a few growth stocks that are well off their highs.

Wingstop (WING -4.79%) is one of them. Shares of the fast-food wing slinger are now down 52% from their peak last fall, as investors have been spooked by weakening consumer sentiment, disappointing 2025 guidance, and missing top-line estimates in its fourth-quarter earnings report. A lofty valuation also accelerated the sell-off, as the stock was priced for perfection six months ago.

However, after the price reset, Wingstop looks set up for an attractive buying opportunity. Here are three reasons why.

Image source: Wingstop.

1. It has an impeccable track record of growth

In the restaurant industry, winners tend to keep winning, and Wingstop’s success is a testament to that. The company is easily the nation’s largest fast-food wing concept, and its model of opening in B-level real estate locations, keeping costs low for franchisees, and relying on digital and delivery channels has paid off.

Wingstop has delivered 20 straight years of same-store sales growth, a streak that includes the financial crisis and the pandemic and is virtually unmatched in the restaurant industry. The company has also reported double-digit comparable-sales growth in many of those quarters.

In fact, in the fourth quarter, it posted 10.1% domestic same-store sales growth and 19.9% same-store sales growth for the year, on top of 18.3% in 2023, giving it a two-year comp of more than 40%.

A restaurant chain that’s able to grow at a rate like that clearly has a product and brand that’s resonating with its customer base. Additionally, Wingstop has been able to grow same-store sales in double digits while aggressively opening new locations, showing that cannibalization has not been an issue.

2. 2025 guidance is likely conservative

Wingstop stock fell 13% on Feb. 20, and continued to slide from there as the company missed top-line estimates in its fourth-quarter earnings report and offered disappointing guidance for 2025.

Management said that it expected low-to-mid-single-digit same-store sales growth in 2025, a sharp slowdown from 19.9% in 2024 or 10.1% in the fourth quarter. On the earnings call, the company explained that that guidance was primarily due to lapping very strong growth in 2024, including 20% growth in the first quarter in 2024.

However, full-year guidance to start the year tends to be conservative for most companies, and Wingstop has a pattern of doing that as well. In fact, in the fourth quarter of 2023, the company guided for mid-single-digit comparable-sales growth, and clearly blew that away with 20% comperable-sales growth.

Management teams generally give targets they’re confident they can hit. That doesn’t mean that Wingstop will blow past its guidance again, but that forecast isn’t a reason in and of itself to doubt the company.

3. It still has a long runway of growth

Wingstop is rapidly expanding in both domestic and international markets, and the company’s franchise model allows it to open stores quickly in new markets and in small-footprint locations that other restaurant chains might avoid.

Wingstop opened 349 net new restaurants in 2024, bringing its grand total to 2,563 locations, and it expects to grow its base by another 14%-15% in 2025, showing that even if its same-store sales growth is modest, the company can still deliver growth through new stores.

The company only has a few hundred stores in international markets, and it can follow in the footsteps of successful fast-food chicken brands like KFC (owned by Yum! Brands) by expanding abroad.

Wingstop is currently targeting 7,000 locations globally, about triple what it has today, and the company could lift that target if same-store sales continue to be robust and there’s demand from franchisees.

A great buying opportunity

Wingstop’s valuation looks much more reasonable after the recent pullback, as it trades at a price-to-earnings ratio of 56, which seems reasonable for a company with its growth potential.

While market headwinds could persist in 2025, Wingstop could also soar again if it can beat its same-stores sales guidance for the year. Long term, the company looks well-positioned for market-beating growth, both as a business and a stock.

Uber Technologies (UBER -2.91%) has navigated the recent stock market volatility well, delivering a solid 23% year-to-date gain for shareholders, while the S&P 500 index is down about 3.5% in 2025 thus far.

The ride-sharing giant is capitalizing on strong demand across its platform, which has led to accelerating profitability. As the company targets new growth opportunities, a compelling case emerges that Uber’s outlook is stronger than ever.

Here are four reasons I believe Uber Technologies stock can make an excellent addition to your portfolio right now.

1. Uber is reporting strong platform demand

For more than a decade, Uber has redefined personal mobility, becoming a cultural shorthand for convenient, on-demand transportation. The company’s growth trajectory has been remarkable, with its monthly active platform consumers (MAPCs) now exceeding 170 million — more than double the 80 million it reported in 2018. In 2024, the company facilitated 11.3 billion trips worldwide, which generated $44 billion in net revenue, up 18% year over year.

It’s not just its ride-sharing service fueling this momentum. Uber has successfully introduced several new transportation options in recent years while leveraging its technology ecosystem into services like food delivery and freight solutions. Not only are more users utilizing an Uber service for the first time, but they’re also increasingly active, taking trips or placing delivery orders more frequently.

This ongoing diversification as Uber continues to enter new markets further strengthens the company’s fundamentals as a high-quality industry leader. Yet, Uber believes it is just getting started, noting that its consumer user base still represents less than 5% of the total addressable adult population in the major countries it serves.

Image source: Getty Images.

2. Uber is a cash-flow juggernaut

Perhaps even more impressive than Uber’s growth is its improved financial position, where earnings and free cash flow have crossed an inflection point. In 2024, earnings per share (EPS) of $4.56 soared compared to $0.87 in 2023, while the $6.9 billion in free cash flow was up 105%.

The expectation is for further profitable growth with an upside for operating margins. Uber’s management has projected optimism toward its outlook, through its $7 billion share repurchasing authorization announced last year. Uber’s ability to return cash to shareholders adds to its appeal as an investment.

3. Uber is positioned to lead with autonomous vehicles

Uber has faced questions about how it will address the rise of autonomous vehicles (AVs), which present both a risk to its driver-based model as well as a massive opportunity. Management acknowledges that mass-scale AV commercialization is years away, with cost, safety, and regulatory challenges ensuring human drivers remain essential to urban mobility for the foreseeable future.

Nevertheless, Uber’s technology and global infrastructure — covering customer support, payments, and fleet management — position it uniquely to support AV operators. Already partnering with leaders like Waymo (an Alphabet subsidiary) and China-based WeRide, Uber integrates autonomous rides into its network in select regions, leveraging these collaborations to tap into a projected $1 trillion market over the next decade.

4. Uber has a compelling valuation

Shares of Uber are trading at 23 times its consensus 2025 EPS estimate, a forward price-to-earnings (P/E) ratio that I view as attractive for a consumer-focused tech titan delivering double-digit percentage growth. While that earnings multiple commands a significant premium over its smaller ride-share rival Lyft (which trades at a forward P/E of 12), Uber’s stronger brand recognition, larger scale, and more diversified, future-proof offerings justify its premium.

A better comparison might be with disruptors like DoorDash, Airbnb, and even Amazon, which lead their categories in the platform economy and trade at forward P/Es above 30. By this measure, Uber stock offers a good mix of growth and value.

Data by YCharts.

Final thoughts

I’m bullish on Uber and predict its shares will continue climbing. I fully expect the stock price to regain its October 2024 all-time high price of $87 by this time next year (it’s currently priced around $74). The company’s combination of strong growth and recurring profitability positions it well to reward shareholders over the long run. Investors confident in Uber’s potential have plenty of reasons to buy the stock for a diversified portfolio.