Believe it or not, pet food can drive some stocks up. That seems to be the case for Freshpet which has formed a three-weeks-tight pattern with a buy point of 116.96 and is today's selection for IBD 50 Stocks To Watch.
The three-weeks pattern could feel like the stock is just going sideways within a small range. But at the same time, IBD MarketSurge chart tools show that it has been doing better than the S&P 500. Year-to-date, the stock has gained 33% while the S&P 500 has risen 9%.
Shares gapped up on Feb. 26, after Freshpet reported its first quarter of profitability. Sales grew 30% to $215.4 million and exceeded the company's own forecast with earnings of 38 cents a share.
For the current quarter, analysts polled by FactSet expect sales of $216.2 with a loss of 23 cents per share. But for the full year, analysts expect profits of 3 cents a share.
High RS Rating For Pet Food Maker
Freshpet makes and distributes pet food to grocery, club, pet specialty and other retail outlets.
The company has a Composite Rating of 92 and EPS Rating of 72. The Relative Strength Rating shows the stock has done better than 95% of stocks in the IBD database.
Mutual funds own 78% of outstanding shares of the pet food stock. This is also a stock under accumulation in recent weeks and has a top notch Accumulation/Distribution Rating of A+.
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